Cynergy Bank has secured a £20m tier two capital facility from British Business Investments.

The challenger bank confirmed the new capital will be deployed across both Cynergy Bank and Cynergy Business Finance.

The new funding from British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, will enable Cynergy Bank to accelerate the delivery of its current business strategy in the SME lending space. The capital facility will also support the bank’s growth plans, which includes delivering over £250m of new-to-bank lending across the SME and property sectors.

In 2022, Cynergy Bank achieved a profit before tax growth of 66% to £50.5m, with a 14% net lending growth bringing its total net lending book to £3.3bn.

The new £20m subscription has been provided through British Business Investments’ investment programme, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.

Chief executive at Cynergy Bank, Nick Fahy, said: “We’re pleased to be working with British Business Investments, and this investment is a truly exciting milestone in our commitment to supporting the financial needs of SMEs and businesses in the UK.

“This additional funding will boost growth in our business and deliver our strategic objectives over coming years, while also significantly increasing our lending capabilities for SMEs, property entrepreneurs and family businesses.”

British Business Investments CEO, Judith Hartley, added: “Our mission is to increase the overall supply and diversity of finance for smaller businesses across the UK. This £20m tier two commitment to Cynergy Bank supports that mission and will help more smaller businesses across the UK access the capital they need to grow.”

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