Loans at Home, part of Non-Standard Finance plc, has secured a new £10m revolving credit facility from Shawbrook Bank Limited, with an opportunity to increase the facility to £15m.
Together with the existing £85m facility for Everyday Loans that can be extended to £105m, the business now have a total of £95m of committed debt funding with the ability to increase this to £120m.
During the 26-week period to 30 June, 2016, Non-Standard Finance saw year-on-year growth continuing at each of its three operating divisions.
Its home credit business, Loans at Home, continued to experience strong growth during the seasonally quiet half of the year through further expansion of its network of self-employed agents, up by 50% from 557 at the time of acquisition on 4 August 2015 to 840 on 30 June 2016. The number of active customers is up 13% over the same period to 98,000 and the net value of loans issued is up 27% in the first six months of the year compared to the same period in 2015.
The acquisition of Everyday Loans, its branch-based lending business, completed on 13 April 2016. In the short time since taking control, it has developed and extended its product offering and increased the yield on new loans issued by 5%. At 30 June 2016 the net loan book at Everyday Loans, including Trusttwo, had increased by 17% year-on-year to £120m (30 June 2015: £102m).
At Trusttwo, a new managing director starts on 11 July 2016, who will be responsible for transforming Trusttwo into a leading participant in the UK’s guaranteed loans market, the business said.
Everyday Loans, including Trusttwo, received all of its remaining permissions to operate from the Financial Conduct Authority on 20 June 2016.
John van Kuffeler, Non-Standard Finance’s chairman, said: “The Group is continuing to perform strongly and we remain on-track to achieve our growth targets of 20% annual loan book growth and a 20% return on assets.
“Our businesses have a history of robust performance during periods of economic uncertainty. In addition, it appears that Britain’s decision to leave the EU may increase the level of demand for our products as mainstream lenders seek to tighten credit further.
“As we enter the seasonally significant second half, our strong performance in the year to-date means that we remain confident about the full year outlook.”