The buyout of the independent invoice finance facility provider was completed by David Tilling, Neal Errington and Darren Cottenden.

As well as the RBS funding, the team also secured a £9m investment from Mobeus Equity Partners, with the combined funding also being used to provide backing for the firm’s growth plans.

Factor 21 has funded over £2bn of invoices for its clients since launching 15 years ago and serves more than 400 SMEs.

Buyout firm Mobeus saw a significant opportunity to capitalise on the strong demand for SME finance and anticipates providing further funding to help Factor 21 expand from its existing regional offices as well as increasing its product portfolio.

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“We are delighted to have secured both the investment from Mobeus Equity Partners and an enhanced financing facility from RBSIF to support our future growth strategy,” said David.

“As we further develop our business we will continue to focus on the creativity and flexibility inherent in our product, underpinned by a strong customer service proposition.

“Geographic expansion is extremely important to us, and we will recruit new talent to help grow our client portfolio.”

Factor 21 currently operates out of offices in Manchester and the Thames Valley and is led by an experienced team, including new board members chairman David Robertson and director Jonathan Gregory.