Blue Motor Finance has secured almost £1bn of funding commitment from five international finance providers.
Most recently, the firm this week secured an increase to its current warehouse facility provided by Citigroup. This follows the extension of an existing forward flow commitment with Sculptor Capital Management, completion of a corporate loan facility with Goldman Sachs and two whole loan sales to funds managed by East Lodge Capital Partners, with senior financing provided from a large European investment bank.
Tiku Patel, chief executive of Blue Motor Finance, said: “Blue’s tech-based proposition is transforming the UK auto finance market. As we continue to grow, we are delighted to be partnering with five such highly regarded financial institutions. We expect to develop these partnerships further as Blue continues to evolve.”
Stuart Williams, chief financial officer at Blue Motor Finance, added: “Blue has developed a dynamic and highly configurable funding platform that supports multiple funding channels and partners. Having a range of funding facilities in place is critical in supporting the future continued rapid growth of Blue.”
The latest funding facilities join funding streams already in place, which have contributed to the business lending more than £1.2bn to over 120,000 customers in the UK automotive sector over the past four years.
Earlier this year, Blue Motor Finance partnered with the Lloyds Bank Commercial Banking API Lab for the roll out of instant loan payments for traders and dealerships. The two companies are working on a Faster Payments system and a Direct Debit API meaning loans agreed will be processed in real-time and paid to customers within minutes.
“The instant payments system is a landmark moment for Blue Motor Finance and for the entire car finance industry,” said Charlie Barker, chief technology officer at Blue Motor Finance. “For the first time, it will mean that our customers will be able to make critical investment decisions, including at a vehicle auction, for example, with the knowledge that they’ll receive cleared funds in their account, potentially within two minutes.”