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UK:
Shariah compliant Bank of London and The Middle East (BLME) has
provided a GBP35 million (US$58.5 million) financing line to a
newly-established leasing company, Renaissance Asset Finance
(Renaissance). Aimed at UK’s small ticket market, Renaissance was
launched to provide asset financing services to SMEs, as well as high
net worth individuals (HNWIs).
Renaissance
will help businesses and individuals release capital tied up in their
assets through a range of flexible products and services including;
hire purchase, lease purchase, finance lease, sale and lease back. This
financing will help companies grow and fund a range of assets from
vehicle fleets and equipment in addition to freeing capital for HNWIs.
Commenting
on the deal, Hugh Sigrist, CEO and founder of Renaissance, said:
“Despite financing pressures on the SME market having eased a little
over the last 12-18 months, small businesses continue to struggle to
access finance. SMEs, let down by many of the traditional asset finance
providers, are now looking for funders to build long-term relationships
with. Renaissance Asset Finance is well placed to do just this.”
As
Renaissance’s key funder, BLME’s provision demonstrates its support to
close the current SME funding gap in the country. “We completely
support Renaissance Asset Finance in its mission to tackle the funding
gap for SMEs. While we primarily finance the UK mid-market, we believe Hugh
and his team are in a position to provide a much needed source of
lending for many small and medium sized businesses who are looking for
reliable access to capital, in a tailored way that best meets the
growth requirements of their business,” affirmed Fred Yue, the head of
leasing at BLME.
Financing
needs of the SME sector have increased following the departure of large
lenders from the market after the financial crisis. The dearth of SMEs
financiers are particularly glaring in the MENA region as the sector
faces a funding gap of up to US$240 billion, according to a report by
the World Bank and the Union of Arab Banks. As a vital component of a
country’s economic growth, industry observers have indicated that the
lack of bank financing for SMEs is an opportunity for Islamic banks to
step in to fill the gap.
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