UK-based challenger Oxbury Bank has secured an additional £10 million Tier 2 capital facility from the British Business Bank, the UK government’s economic development bank.

Launched in 2021, Oxbury positions itself as the UK’s first and only fintech with a full banking licence, focusing exclusively on the agricultural sector. Led by CEO James Farrar, the founding CEO of ClearBank, the lender offers financing solutions tailored to farmers, alongside savings accounts open to “anyone that wants to support British agriculture”, according to Farrar.

This latest agreement builds on a £25 million facility established in 2022 and will be used to further assist Oxbury in supporting small and medium-sized enterprises (SME) within the food and farming sector. The funding will enable these businesses to invest in land, automation, infrastructure, and storage.

Since its initial 2022 agreement with the British Business Bank, Oxbury claims to have made significant strides in the agricultural sector. Nick Evans, Oxbury’s co-founder and managing director, reports that the challenger is now “executing one in five new farm loans in the country” and is approaching a “10% share of new agricultural lending”. 

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Beyond the Tier 2 facility, the British Business Bank has also supported Oxbury through other initiatives, including a £100 million ENABLE Guarantee deal. This programme was projected to help Oxbury originate around £45 million in additional lending to SME agricultural businesses.