The Bank of London and the Middle East (BLME) has announced that it will provide an £8 million facility to asset lender Regency.

The two-year facility will be secured against any of Regency’s trade receivables that are due under full service factoring and purchase finance arrangements.

In an economic environment where a scarcity of working capital poses a significant threat to the survival of many SMEs, Regency – supported by BLME’s facility - plans to grow its own client base to ensure that such a key part of the UK economy receives the financial help it deserves.

Speaking about the deal, Maurice Craft, Managing Director at Regency, said: “Regency’s bespoke approach to the provision of finance bypasses the traditional tick-box approach adopted by mainstream lenders when considering applications by SMEs for financing.

“By adopting a flexible approach when considering applications for facilities by SMEs, Regency is able to focus on its client’s customer base and order book in order to provide cash flow and the working capital needed by the SME to grow its business.”

BLME’s Head of Corporate Banking, Jervis Rhodes, added: “With traditional financing remaining constrained, and government budgets under pressure, it is important for finance providers like BLME and Regency to step into the gap. Our principles and approach are similar to those of Regency: we work with our clients to develop a bespoke solution or product. We believe in partnerships founded on the principles of trust, understanding and accountability.”

BLME is an independent UK and Sharia compliant bank based in London.

The institution received FSA authorisation in July 2007 and generally has interests within three key areas: corporate banking, treasury and wealth management (including asset management) and private banking.