Staffordshire-based Shire Leasing will use the facility to further grow and diversify its lending base, having previously secured £40m of block line funding from the bank's commercial arm in 2014.

The deal comes under the bank's ENABLE Funding programme, which aims to increase the supply of finance to smaller businesses in the UK.

Keith Morgan, CEO of the British Business Bank, said: “Our ENABLE Funding programme is an important part of our support to smaller finance providers as they look to scale up their provision.

“Helping Shire take the step up from reliance on block funding to being able to access the ENABLE Funding offer is a great example of how we are increasing both the amount and diversity of funding available to smaller businesses.”

As part of the deal, the bank's commercial arm will provide £6.6m of mezzanine funding under its investment programme.

The European Investment Fund will also guarantee 50% of the ENABLE Funding Facility.

Mark Picken, managing director of Shire Leasing, added: “When we embarked on our initial match funding relationship with the British Business Bank's commercial arm in 2014, it was always our intent to access the capital markets.

“The commercial journey we have made with British Business Bank Investments Ltd – and the support we have received from British Business Bank PLC's ENABLE team – has helped us realise this strategy.”