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.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Development Bank of Wales provides £500,000 to IT repairs business
Comtek Network Systems UK Limited has secured £500,000 of investment from the Development Bank of Wales
Wesleyan Bank names new director
Wesleyan Bank has strengthened its management team with the appointment of Simon Welling (pictured above) as its director of sales and marketing.
Cash Isa savers missing out on transfer market
Half of cash Isa savers aged 55-plus (50%) have never moved their accounts to another provider, according to a new study.
CivilisedBank secures further funding
CivilisedBank is set to receive further funding from current investor Warwick Capital Partners, subject to regulatory approval.
A round-up of the latest specialist banking products
With the continuing expansion of the specialist banking market, this year promises to bring a host of new products and services to the sector.
Hanley Economic BS rebrands
Hanley Economic Building Society has rebranded as it launches its first ever TV advertising campaign.
Lydia raises a further €13m
Lydia has announced that it has raised a further €13m, taking the total amount raised by the French fintech start-up to over €23m.
Fintech as a force for good
The big news around fintech focuses on the many ways it is already making financial services more profitable, more scalable, more secure and more user-friendly.
FIBA commits to 30 events
The Financial Intermediary & Broker Association (FIBA) has announced 30 regional meetings for its members and intermediaries interested in joining the Association.
20% of brands to abandon their mobile apps by 2019
A fifth of brands will abandon their mobile apps by 2019 due to a lack of adoption and customer engagement, according to a study by research and advisory company Gartner.