British Business Bank boosts LE Capital with £100m guarantee for used car financing

The British Business Bank has entered into a transaction valuing over £100 million under its ENABLE Guarantee programme, partnering with Paragon Bank. This initiative aims to extend financial support to LE Capital, boosting their capacity to serve more used car dealerships in the UK. Historically significant, this transaction marks the first time the British Business Bank is promoting electric and hybrid vehicle financing through a pricing incentive on the guarantee. The overarching objective is to enable LE Capital to double its dealership outreach, thereby facilitating larger financing facilities and offering competitive pricing. Paragon Bank has been pivotal in this process, creating opportunities for independent dealerships to sustainably manage their stock. The ENABLE Guarantee is a government-backed mechanism designed to ensure increased lending to SMEs across the UK, incentivising lenders like LE Capital to expand their automotive financing operations. Established in 1985, Paragon Bank has a longstanding history of providing financial services and currently participates in the UK’s specialty finance sector which increasingly prioritizes eco-friendly vehicle solutions.