Conister Bank has acquired a 40% stake in sub-prime asset lender the Business Lending Exchange (BLX) .
The London-listed bank also has an option to acquire the remaining issued share capital in three years' time.
In November 2017, Conister provided a £4m lending facility to BLX.
BLX primarily lends to start-ups, sole traders and small businesses with advances of between £1,000 and £30,000, providing funding secured on assets such as vehicles and machinery.
“We are delighted to build on our excellent working relationship with Conister Bank,” said Chris Allan, managing director at BLX (pictured above, left).
“It will help us service the desperate need there is in the UK for funding to the small business community, largely ignored by traditional lenders.
“They are the backbone of the British economy, yet high street banks have been strangling them of finance needed to grow and create employment.”
Douglas Grant, managing director at Conister (pictured above, right), added that BLX focused on lending to SMEs, a market which had recently witnessed a reduction in lenders.
“This, along with the company's commitment to customer service, will propel this business to a meaningful size in the next few years.
“We are pleased to be the debt provider and a major shareholder in this business and believe it will be a great bolt-on to the bank through the exercising of the option.”
Douglas has become a non-executive director at BLX.
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