Fast-growing Bath-based alternative finance provider Time Finance has increased its lending capacity after securing a new finance worth £15m.
The block discounting facility was announced shortly after Time Finance revealed a 35% increase in half-year pre-tax profits to £2.7m on revenue up 19% at £15.7m.
The interim results also showed own-book lending origination rose by 29% to £47.3m and gross lending hitting £188.6m – the highest the group has achieved.
Net deals in arrears remained stable at 6% of the lending book as at 30 November.
Time Finance specialises in providing or arranging funding to more than 11,000 UK businesses seeking to access the finance they need to realise their growth plans.
Its portfolio spans invoice finance, asset finance, vendor finance, business loans and asset-based lending.
Time Finance said it had required additional capital to expand its £185m-plus and growing lending book.
It worked with Cynergy Business Finance, the asset-based lending (ABL) arm of Cynergy Bank to secure the £15m facility to help release capital from within its customer agreements.
Time Finance chief financial officer James Roberts said: “Time Finance has been at the forefront of delivering market-leading financial solutions to our customers across the UK, and is committed to delivering robust funding solutions that inspire confidence and growth for SMEs.
“In order for us to scale up our lending book, we needed a trusted and flexible funding partner to help support our strategic growth plans.”
In its interim report to shareholders, Time Finance said continued positive trading momentum throughout December gave “significant confidence that full-year trading would be at least in line with board expectations”.
Non-executive chair Tanya Raynes said: “These results show that our focus on own-book lending continues to deliver a strong trading performance.
“This is particularly encouraging given the wider economic headwinds and demonstrates UK SMEs' robust demand for funding from a truly customer-focussed, multi-product provider of finance like ourselves.
“The strategic positioning of the group within the market has enabled it to generate increasing levels of demand whilst also maintaining control of credit and spread risk.
“As a result, the group is well positioned to deliver further growth and increased value to our shareholders.”
