Cornwall-based Ignition Credit has secured £5m (€6m) of block discounting funding from Hampshire Trust Bank.
Ignition Credit will use the funding for onward lending to businesses and asset finance brokers serving the SME sector, as well as private individuals.
Ignition Credit offers finance for a wide range of assets from plant and machinery to vehicles and business equipment.
Through its block discounting division, Hampshire Trust Bank offers funding direct to independent finance houses that want to use their loan book as security to fund the development of their business. Block discounting enables lenders to release capital invested in finance agreements, restoring cash flow.
Alan Tutte, director at Ignition Credit, said: “This is good news for our business and our customers. This funding will allow us to increase our lending and provide greater support to businesses across the region and beyond.”
Andrew Dearden, director of Block Discounting at Hampshire Trust Bank, said: “As a specialist bank focused on supporting UK SMEs, we are delighted to be working with Ignition. Block discounting is a specialist type of lending. By providing this credit service to finance companies, we are helping to create an ongoing stream of funding for further agreements, helping UK SMEs achieve their growth ambitions.”