Industry news

CEO of Close Brothers Retail takes the helm at FLA

28 July 

FCA sets clock ticking on consumer duty changes

The UK’s financial watchdog has announced plans to bring in a new Consumer Duty to fundamentally improve how firms serve customers, giving firms 12 months to implement these new guidelines on all existing products and services that are currently being offered.

The Financial Conduct Authority (FCA) said that the duty is made of overarching principles and new rules, which would require firms to communicate in a way consumers can understand, offer products and services that meet their needs, offer fair value while providing customer support.

With the focus on customer needs and clarity on FCA’s expectations, firms could achieve the flexibility to compete and innovate, said the FCA, which hopes to be a more ‘assertive and data-led regulator’.

The rules would require firms to end rip-off charges and fees, make it easy to change or cancel products, and provide customer support.

The firms will also be required to provide clear and timely information about products and services to help customers make informed financial decisions and offer products and services that are right for them.

Furthermore, the firms will have to focus on the diverse needs of customers including those who are vulnerable.

25 July

Leasing Foundation expands its remit under Mollett

Nathan Mollett, the Leasing Foundation‘s new chair, has set out the Foundation’s vision, including the addition of two extra channels to the group’s activities as well as a commitment to better regional balance for its initiatives across the UK.

The existing channels of Innovation, NextGen and Diversity & Inclusion will continue to be aligned with the Foundation’s mission but “there are several additional focus areas which were identified at an industry engagement drinks event held two months ago,” the Foundation said in a press release.

The two new channels are: Sustainability – one of the most consistent items of feedback was that the Leasing Foundation should help shape the conversation on sustainability. Giving – this is an area where the industry can join together to support worthy causes, the organisers said.

The Foundation will be adding new faces to the board to support these new channels and will announce these appointments shortly. In addition to the new sustainability and giving programmes, Mollett will also broaden the scope and reach of the Foundation both geographically and into other areas of finance. Most of its events are currently London-based but there is a large business finance community in the north who repeatedly say that they’d like to see more regional events.

7 July

M&G purchases 41% stake in Finance Ireland for €50m

UK-based M&G has announced the acquisition of a 41% stake in Finance Ireland, an alternative finance provider, for €50m.

Finance Ireland, a top-tier non-bank lender in Ireland, offers a range of financial solutions including car finance, leasing, SME financing and agriculture loans.

The Irish firm will use the proceeds for growing and expanding future lending, which surpassed the €1bn figure for the first time in 2021.

Chief executive Billy Kane founded the lender in 2002 and it currently employs 170 people.

In 2018, Finance Ireland forayed into the residential mortgage space, with M&G having bought around €1bn of these mortgages in the past three years.

Last year, long-dated fixed-rate mortgages with terms of up to 25 years were launched with backing from an existing funding agreement with M&G Investments.

M&G private & alternative assets division chief investment officer Will Nicoll said: “Finance Ireland is the largest non-bank lender within the Irish market and is well-positioned to take advantage of favourable structural changes as some banks withdraw for core areas of lending.

“In addition to the growth potential of the business, the investment provides us with long-term funding opportunities as we continue to partner with the team to bring innovative financing solutions to Irish businesses and consumers.”

4 July

Close Brothers Leasing to fund large battery energy storage system

Close Brothers Leasing, part of merchant banking group Close Brothers, has announced it is to provide a development loan for a 99.98MW battery energy storage system (BESS) belonging to Pacific Green Technologies, located at Richborough Energy Park in Kent.

The funding will cover the BESS construction phase, Close Brothers said in a press release.

On June 28, law firm Gowling WLGannounced that its energy team had advised Pacific Green over a senior debt facility agreement with Close Leasing.

Earlier in June, Pacific Green said it had reached a financial close for £28.25 million of senior debt for the 99.98MW BESS. It said the senior debt, in conjunction with the equity investment by Green Power Reserves Limited, will provide the Company with the funding to bring the battery park to commercial operations in June 2023.

Pacific Green said the senior debt facility agreement with Close Leasing will be used in stages following the expenditure of the equity investment. Gowling WLG added that the loan would be refinanced into a 10-year amortised term loan upon the start of commercial operations.

According to its website, Pacific Green Technologies Group is a provider of sustainable cleantech solutions with a view to helping address climate warming, green energy and resource scarcity challenges.

6 July

UK asset finance new business grew by 5% in May 2022

Total asset finance new business (primarily leasing and hire purchase) grew in May 2022 by 5% compared with the same month in 2021, according to new figures released by the Finance & Leasing Association (FLA). In the five months to May 2022, new business was 2% higher than in the same period in 2021.

5 July

Grenke posts nearly 48% YoY growth in new leasing business

German financing firm Grenke, which caters to SMEs across Europe, has generated new leasing business worth €587.4m in the second quarter of 2022. The figure represents a surge of 47.4% year-on-year (YOY). In Q1 2022, the financing firm registered a growth of 36.5%, and in Q4 2021 it was 22.1%

25 October

UK's Haydock Finance targets dairy sector

The agricultural division of Haydock Finance has launched a product for the UK dairy sector. Dairy Cattle Finance “includes refinancing and has been designed to support British farmers with their cattle purchasing and cash flow requirements,” the provider said during an Agri Finance webinar unveiling to its broker partners.

25 October

UK's Haydock Finance targets dairy sector

The agricultural division of Haydock Finance has launched a product for the UK dairy sector. Dairy Cattle Finance “includes refinancing and has been designed to support British farmers with their cattle purchasing and cash flow requirements,” the provider said during an Agri Finance webinar unveiling to its broker partners.

25 October

Catfoss Finance in undisclosed block discounting deal

UK-based asset finance provider Catfoss Finance has announced a block discounting partnership with investment manager Downing LLP for an undisclosed amount. In a statement, Catfoss said the facility would enable Catfoss to extend its reach to more UK SMEs, providing hire-purchase, leasing and refinance for business assets, the business.

25 July

PEAC family unveils its latest member: PEAC Solutions

Marlin Leasing Corporation, a provider of capital solutions for SMEs in the US is to be rebranded as PEAC Solutions, according to a press release.Marlin Leasing was recently acquired by funds managed by HPS Investment Partners LLC. The PEAC family of finance companies operates in 12 countries with balance sheet lease assets of over $5.1bn.

25 July

Solera joins Leaseurope as an associate member

Leaseurope has announced that Solera has joined the organisation as its latest associate member. Solera is a global provider of vehicle lifecycle management. “Its AI-enabled technologies apply proprietary algorithms on the most robust collection of vehicle, repair, performance, and telematics data in the industry,” Leaseurope said.

20 July

Soaring inflation pushing SMEs to scale back investments: survey

A survey by Time Finance shows that the rising costs are forcing SMEs to scale back their investments. The study revealed that one in five SMEs are not able to invest in growing their business and one in ten businesses are unable to meet their existing financial commitments.

Time Finance has warned that scaling back investments will have a wider impact on the economy.

19 July

NatWest announces £1.25bn lending package for UK farmers

British banking group NatWest has announced an additional lending package worth £1.25bn for its 40,000 agriculture customers. The move is aimed at helping customers deal with rising costs and support them in transitioning towards sustainable practices. NatWest will deploy the funds through various means such as traditional loans, asset financing, green loans and increased overdrafts.

15 July

United Trust Bank taps Workato to power asset finance platform

UK-based specialist lender UTB has selected Workato for enterprise automation solution to power its asset finance platform. Through the partnership, UTB hopes to connect and integrate a variety of tools and applications into its new asset finance platform, including automated remote ID verification, secure document upload, electronic signing and instant credit check referencing.

14 July

BNP Paribas Leasing Solutions taps Zuora to offer usage-based solution

BNP Paribas LS has turned to cloud-based subscription management platform Zuora to offer usage-based solutions for professional equipment. The tie-up will see BNP Paribas Leasing Solutions leverage Zuora to enable its partners to offer new usage-based solutions to their clients with customised invoicing that factors in how and when the equipment is used.

8 July

Allica Bank crosses £100m mark in asset finance funding

UK-based challenger Allica Bank has achieved the milestone of providing over £100m in asset finance funding to SMEs since its launch in 2021. The SME-focused lender said it worked with the broker community to reach SMEs in need of funding. Allica noted that the demand has shot up and it has already provided £78m in financing in 2022.

7 July

IIP awards Ogilvie Fleet and Alfa with platinum and gold accreditation

Investors In People (IIP), a UK government-backed accreditation body, has awarded Platinum status to Ogilvie Fleet. IIP said employees see Ogilvie Fleet as a ‘great place to work, and that job satisfaction is exemplary within the company’. Alfa, which provides the asset finance software platform Alfa Systems, has been awarded Gold accreditation by the IIP.