A UK Lending firm announced yesterday that it is opening a base outside of Manchester with the opening of an office in Birmingham.
The ending firm provides invoice discounting and factoring finance to small businesses, and has recruited commercial finance specialist David Totney to spearhead the launch of its Midlands operation.
Mr Totney joins David Smith, Phil Chesham, Simon Cook and Peter Davis – the founders of the Lender – on the company’s board.
He worked at Lloyds TSB Commercial Finance before setting up a factoring business, Liquidity, which he then sold to Santander and became the bank’s head of invoice finance.
The lending company, which is based in Castlefield, Manchester, lends up to £1m to companies with turnover of between £100,000 and £10m to fund buyouts, acquisitions, working capital, start-ups and pre-pack transactions.
The business, established in December 2007, moved into the black in its last financial year. It achieved pre-tax profits of £467,000 for the 12 months to the end of last November. Fee income rose from £1.8m to £2.9m as it advanced £13.5m to customers.
Managing director Mr Smith said: “With other players in the region moving toward the larger end of the market, it is the perfect time for our company to set up in the Midlands and support SMEs.”
This is great news for factoring lenders across the UK. Birmingham, being a hub of industry can benefit from such firms and help spread the word of using alternative finance to SME’s.
Factoring Lenders everywhere know they have a great product, yet it is believed only 5% of SMEs use factoring as an alternative lending solution. Fingers crossed Birmingham will take on the simplicity and cost effectiveness of factoring and spread the word across the midlands. They can be a leader in alternative finance and show the rest of the UK what they’re missing out on.