The merger will allow both organisations to work together as they look to increase support for SMEs and deliver the government's commitment of 75,000 start-up loans by 2020.

The pair have been working closely since 2014 with the British Business Bank providing advice to the government on the Start Up Loans programme's funding, objectives and performance.

A transition period will take place until 1st July during which both operations will be brought together, but both will stay in their current offices and retain all existing branding and frontline services.

“The bank has been working closely with the Start Up Loans Company for several years and this merger will bring the two organisations – which already have a shared sense of purpose and complementary skills – closer together,” said Keith Morgan, CEO of the British Business Bank.

“This is a natural next step, an exciting moment for everyone involved, and means we can deliver a better service for smaller businesses.”

The announcement comes after the Start Up Loans Company surpassed total lending figures of £300m, supporting an average of 11,200 loans a year since launching in 2012.

This was after it provided the founders of The Oystermen – Matt Lovell and Rob Hampton – with a loan to fund the opening of their first oyster restaurant in Covent Garden.

Tim Sawyer, CEO of Start Up Loans, said this merger recognised how successful its partnership with the British Business Bank has been and helps it to improve support for businesses struggling to find finance.

“Providing more than 46,400 loans to businesses across the UK is a testament to the drive and ambition of people throughout the country.

“The Oystermen is a great example of a business idea which has been brought to life with a Start Up Loan.

“They now have a solid business plan in place, which will see them grow their footprint across London and bring oysters to more seafood lovers in the capital and beyond.”