Propel Finance Raises $2 Billion to Fund UK Small Businesses

British FinTech Propel Finance has raised $2 billion in a new funding round.

The round, announced Friday (July 4) on the company’s LinkedIn page, will help the company in its mission of offering asset financing to small and medium-sized enterprises (SMEs).

“This funding represents a significant step forward for Propel and a major win for UK SMEs, enabling thousands more businesses to access the finance they need to invest in business-critical equipment and vehicles – the tools that drive productivity, efficiency, and growth,” the announcement said. “We’re proud to continue backing ambitious businesses with accessible, flexible finance solutions to help them move forward with confidence.”

The new financing round comes at a time when many small- to medium-sized businesses (SMBs) and micro-businesses are having trouble getting funded.

Almost a third of micro-business applications for bank credit in the United States and the United Kingdom are turned down because the lender can’t verify their basic data, according to a forthcoming PYMNTS Intelligence report in collaboration with Markaaz, a company that enables lenders to confirm the identities and financials of small businesses worldwide and assess the risk of lending.

“Despite operating in a digital-first world where data is everywhere, micro-enterprises face a rejection rate that’s five times higher than for larger enterprises,” PYMNTS wrote in June. “Why? Whether it’s a national bank, smaller financial institution or local credit union, lenders routinely complain that they struggle on their own to ascertain the validity of a micro-company’s basic corporate and financial details. The black box carves a straight path to, at best, stalled approvals for loans or credit, at worst, higher rejection rates.”

Even before the new White House tariffs went into effect, small businesses in the U.S. — micro enterprises included — already faced shorter lifespans. Only 25% remain open for 15 years, and nearly half close their doors after five years, according to the most recent data from the Small Business Administration.

“The reasons range from running out of cash and flawed business models to misgauging market demand and operational snafus,” PYMNTS wrote.

And in the U.K., where 95% of all businesses are micro-enterprises employing 30% of all workers, a fifth of all small businesses fail inside their first year — what U.K. officials call the business “death rate” — while 60% shutter within their first three years.