£10 million facility for Innovative Automotive Finance group
The management team of our client come with exceptional pedigree; senior management from one of the most successful car finance companies ever seen in the UK and the founder of the most successful lead generation business in the UK operating in the personal loans sector.
£10,000,000 debt + undisclosed equity
Together they have developed a model that matches the needs of senior debt providers – exemplary underwriting terms, adherence to FCA requirements, and a provable model for keeping bad debts to the lowest ratios seen in this industry.
We were approached to provide the second round of funding, in essence the first round of external funding, with founders and friends having committed well over £500,000 of their own money. We set to work, presenting to those investors, both private and corporate, able to fund a £5m line of credit.
We delivered serious investors to our client, some of whom may be perfect when the company has a year or so of track record but not able to jump in now. Given the early stage of this business most investors simply will pass on this type of opportunity. B&Y, however, have sources of capital that others do not. One investor known closely to us stood out and offered to fully fund the £5m requirement. In addition he has bought a sizable minority stake in the business and taken a seat on the board.
In the last two years alone, our client’s business has grown 400%. To support the continued growth, we secured an additional £5million from the original investor, meaning our investor has now entirely funded the loan book with a total of £10million in capital raised.
With accelerating annual growth, the next round of funding is likely to be in the range of £25 - £50million. We have already introduced several sources of capital who operate in this range and will continue to work on these later in the year.
We are really pleased to see our investor and client working well together and achieving the objectives they have set themselves. The next phase of growth promises to be really interesting. All parties are delighted with the outcome and we look forward to tracking the success of this business in the months and years ahead.