Fifteen consecutive months of growth have been chalked up by Bath-headquartered alternative funder Time Finance in its own-book lending portfolio, taking it to an all-time high.
The firm, which specialises in asset, loan and invoice finance products, sees increasing its own-book lending as a key pillar of its medium-term growth strategy, announced 15 months ago, which targeted a doubling of its lending portfolio by 2025.
In an update to shareholders, the firm, which is listed on the London Stock Exchange’s AIM market, said the value of the lending portfolio had reached a group historic high of £145.1m.
This compares with the previous group high of £144.1m recorded in February 2020, immediately prior to the onset of the pandemic, which Time Finance said demonstrated the strength of its recovery from a pandemic induced low of £115.7m in May 2021.
The average own-book deal size was also continuing to increase and was now around £25,000 compared with £14,000 when the medium-term strategy was launched, the firm said.
Meanwhile, its total net arrears have continued to fall. As at 30 September 2022 net deals in arrears stood at £8.8m, down a further 4% from the 31 August level of £9.2m and down 38% on the pandemic induced £14.3m as at 31 May 2021.
Time Finance chief executive officer Ed Rimmer, pictured, said: “Our medium-term strategy has a clear focus on substantially increasing own-book lending and strengthening the group’s balance sheet.
“I am therefore delighted to see real traction being gained in both areas over the last half year. This has resulted in the group’s own-book lending portfolio now standing at record-high levels; marks the portfolio's full recovery, and more, from the Covid pandemic, and should result in growing income and profit streams for the group over the life of these deals.
“Equally pleasing is that the increase in the portfolio continues to be driven by both the group’s invoice finance and 'hard' part of the asset finance divisions.
“This is very much In line with our strategy as both of these areas operate in the more secured lending space.”
Time Finance supports around 10,000 businesses with flexible and supportive funding packages.
Over the past 12 months it has developed and launched new products, including its ‘Fast Track’ soft asset finance solution, which makes the process of securing new equipment swifter and easier.
