Bridging lender Tiuta says it has secured several new funding lines.
It says this is part of a ’business transformation process’ which will allow for more profitable loan trading in the future.
Meanwhile, there have been two redundancies at the bridging lender.
“For several months, Tiuta has continued to review its business model and decided some time ago that to secure its long-term future, establishing several new funding lines offering better value to the business was an essential part of this process,” said Steve Nicholas, managing director of Tiuta.
“Tiuta has now secured several new funding lines, allowing it to be more competitive in the market. In addition, Tiuta is also in the process of securing additional investment into the business so that it can continue to thrive.
“Consequently, Tiuta has started a process of reducing its dependency on the lending facilities from the Connaught funds and this process has already started and will continue until all loans are redeemed. Our expectation is that as these loan facilities redeem, the take-on of new lending lines will more than compensate for them, but allow Tiuta to continue to be more competitive in the short-term lending market to ensure that it can remain a leading short-term lending business in the UK.”
“We understand the commercial benefit, to Tiuta, of its decision and our objective now is to ensure a process is developed for our funds that is in the best interests of our investors,” said Mike Davies, chairman of Connaught, said.
“We are also in the process of designing some new investment vehicles for the marketplace and these will be announced shortly. We are very much working alongside Tiuta during this process and will continue to have an involvement in financing the short-term lending market for the foreseeable future.”
Regarding the redundancies, Nicholas said: “Tiuta continues to restructure to make efficiencies throughout its processes and this has involved outsourcing some of its functions and streamlining others. This is a strategic planned exercise and is just part of an overall strategy to ensure that Tiuta remains one of the market leaders in bridging.
“As a result of this reshuffle, one member of the legal team and one member of the underwriting team have been made redundant.”