In a further attempt to help boost the trading environment still being experienced by beleaguered small companies in the UK, the European Investment Fund (EIF), the SME credit provider established by the European Union, has issued a new fact sheet in conjunction with Leaseurope. It explains how lessors can use the EIF organisation to channel much-needed funds into the support of small and medium sized businesses.
The EIF has offered two schemes that can ‘help leasing companies in challenging times’. One aspect of the programme is a securitisation method for bank-owned and independent lessors to make available between 50m and 100m euros in guaranteed senior debt. This option is available to companies that are typically funded through bank lending and it’s designed to target ‘financial institutions committed to SME financing’.
The scheme is operated by the European Investment Bank, together with the European Commission and various independent financial services companies. The second aspect of the paper explains how uncapped guarantees on 50 per cent of every eligible lease can be provided by the EIF, while the credit analysis, decision processes and servicing will still be the responsibility of the lessor. The EIF has said that it has
“a pool of investors keen to invest in products guaranteed by the EIF with an attractive all-in cost for the originators.”
There are more options to be announced by the European Commission in due course, as part of their mandate to make more EU and governmental funding available to SMEs, so carry on following our news feeds for ways to keep your funding and equipment leasing options open.
