
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
-
Rob Lankey to join Shawbrook as director of commercial investment
Shawbrook has announced that Rob Lankey (pictured above) will join as its new director of commercial investment at the end of February...
-
Secure Trust Bank ceases new mortgage lending
Secure Trust Bank has revealed that it has ceased new mortgage lending...
-
Starling Bank announces three new partnerships
Starling Bank has expanded its banking services offering with the introduction of three new partners...
-
Mortgage advisers forecast almost no growth in business levels in Q1
Mortgage advisers expect business growth of only 0.1% in in Q1 2019, according to recent research...
-
Fidor partners with Finn AI to launch AI-powered chatbot for banks
Digital banking group Fidor has partnered with banking technology provider Finn AI to launch a new AI-powered chatbot for banks...
-
Tesco Bank cuts mortgage rates
Tesco Bank has reduced rates across its residential mortgage range...
-
Zopa appoints new chairman
Zopa Group has appointed Gordon McCallum (pictured above) as its new non-executive chairman, while Giles Andrews will step back from his group chairman role, but remain on the board...
-
Starling Bank raises £75m to fund global expansion
Starling Bank has raised a total of £75m to fund its global expansion, which is due to start in Europe...
-
Redwood Bank names new director
Redwood Bank has appointed Leon Marklew (pictured above) as its new director of strategy, products and marketing...
-
Banks need to unite to redefine their social purpose
We are currently seeing a shift in momentum in how people view the role of the banking sector. We have seen non-governmental organisations and customers campaigning for banks to play a role in the move towards a more sustainable world...
-
Aldermore offers free standard valuations on high LTV purchase-only range
Aldermore is now offering free standard valuations on its high LTV purchase-only products, with no product fees...