Search British Business Bank
Popular Search placeholder

Rural Asset Finance agrees up to £120m funding facility from NatWest and BCI Capital, supported by the British Business Bank

Press release 24 July 2025

  • Facilities provided by NatWest Bank and BCI Capital will support a maximum portfolio of c.£120m
  • Rural Asset Finance is a specialist lender for British agricultural businesses
  • A portion of the funding is supported by the British Business Bank’s ENABLE Guarantees programme.

The British Business Bank has agreed an ENABLE Guarantee with agricultural lender, Rural Asset Finance. The transaction is anticipated to support a portfolio of up to c.£120m to smaller rural businesses across the agricultural sector in the UK through a combination of asset finance and term lending.

The funding is being provided by NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of the funding provided by NatWest. The funding is aligned with Rural Asset Finance’s focus on sustainability and includes a margin adjustment if sustainability performance targets are met.

The British Business Bank’s ENABLE Guarantees programme is designed to encourage banks and other lenders to increase their lending to smaller businesses by reducing the amount of capital or junior funding required for such lending. Under an ENABLE Guarantee, the UK Government takes on a portion of the risk in a transaction supporting debt finance to smaller businesses, in return for a fee.

Rural Asset Finance was established in 2019 and is a specialist direct lender to British farmers helping to fund, diversify and future-proof rurally based businesses. Financing options can be flexible combining equipment finance and business loan options to tailor each solution for the borrower.

Michael Strevens, Managing Director, Structured FI Solutions, British Business Bank said:

This transaction with Rural Asset Finance builds on the work we have done through the ENABLE Guarantees programme to support the provision of funding to businesses in the agricultural sector. Collaborating with established capital providers like NatWest and BCI Capital allows us to increase the availability of funding for non-bank lenders such as Rural Asset Finance and, through them, the smaller businesses they lend to.

In addition, by including a pricing incentive linked to sustainability objectives we hope to see further expansion of small business lending in sustainable areas, including farm renewable energy installations.

Matthew Smart, Managing Director, Rural Asset Finance said:

With the support of the British Business Bank’s ENABLE Guarantees programme, alongside lenders NatWest Bank and BCI Capital, this enhanced facility carries an attractive credit margin, which gives Rural Asset Finance a highly competitive offering to our borrowers. As a result, we are now best placed to support farmers driving efficient high-tech food production, as well as those diversifying into alternative revenue streams. Food production and diversification on UK farms are key to ensuring a healthy, robust future for the industry and the wider rural economy in the current challenging geo-political landscape.

Matthew Whittle, Relationship Director, NatWest Bank: 

We’re pleased to support Rural Asset Finance in securing this new facility, backed by the British Business Bank’s ENABLE Guarantees programme. The provision of the Guarantee alongside the Sustainability Linked features, will help unlock capital, reduce costs and ultimately increase access to competitive funding for agricultural and rural businesses across the UK.

We look forward to working with Rural Asset Finance and the team as they build on prior success and, in particular, augment their sustainable financing initiatives. The ENABLE Guarantees programme provides an innovative platform and opportunity for NatWest to accelerate funding to non-bank specialist lenders, underscoring our commitment to both the sector and UK SME’s.

Will Haynes, Investment Manager, BCI Capital said: 

BCI Capital is committed to supporting innovative, specialist lenders who are making a tangible difference in underserved sectors of the economy. Rural Asset Finance plays a crucial role in enabling growth and resilience across the UK’s agricultural and rural business landscape, and this facility – backed by the British Business Bank’s ENABLE Guarantee – will further strengthen their ability to support farmers and rural entrepreneurs. We are proud to be part of another partnership alongside NatWest – in this instance helping to drive forward lending aligned with sustainability and rural economic development.

Further Information

If you are a journalist and have a media enquiry, please contact [email protected].

Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1 of finance to almost 64,000 2 smaller businesses.

As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Business Guidance provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.

The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4bn in finance to 1.67m businesses. These schemes are now closed to new applications.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at British Business Bank.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party of Rural Asset Finance, NatWest, BCI Capital or their products or services.

Rural Asset Finance

The Rural Asset Finance group (RAF) is a specialist direct lender helping farmers and rural businesses fund, diversify and evolve post-Brexit.

RAF offers fixed-term, fixed-rate finance for everything from equipment, machinery and vehicles; to longer term fixed assets, land and buildings purchases and refinance for working capital. RAF supports farmers with investment for efficient food production, environmental land management schemes, on-farm renewable energy installations, state-of-the-art agri-tech purchases and rural diversifications in any farm-based businesses.

RAF’s bespoke solutions and customer support are tailored to the individual business and their individual cash flow needs by Rural Asset Management Services (RAMS) – the group’s FCA-regulated originator and servicer. The company’s inhouse, one-stop shop of fund management, credit and legal services based at Cambridge, supports RAF’s national sales team.

NatWest Bank Plc

NatWest Group serves customers in the UK supporting them with their personal, private, and business banking needs. NatWest helps customers at all stages in their lives, from opening student accounts, to buying their first home, setting up a business, and saving for retirement. Alongside a wide range of banking services, NatWest offers businesses specialist sector knowledge in areas such as manufacturing and technology, as well as access to specialist entrepreneurial support. 

We recognise agriculture as a vital strategic industry, reflected in our £6.7bn funding commitment to the sector. By championing innovation, nurturing future talent, and identifying opportunities across the supply chain, we’re helping to build a more resilient, productive and future-ready agricultural economy.

BCI Capital

BCI Capital Limited is registered in England with Company no. 13012204. BCI Capital Limited is authorised and regulated by the Financial Conduct Authority, registration no. 964475.

Latest news