Subprime car finance lender Advantage, part of the S&U group, has expanded its receivables portfolio to £240m, a first for the company.
Over the four months to December 6, receivables grew 5.7%, accompanied by an 8% rise in number of clients, to 53,000.
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Impairment rites rose to 23.4%, from 20.1% in December 2016. The company said that tighter underwriting, “appropriate in a more uncertain economic climate”, resulted in a lower rate of loan approval. However, transactions benefitted from the implementation of a e-signature system from Dealflo.
S&U secured £20m extra in funding over the four-month period, bringing total committed facilities to £115m.
Anthony Coombs, S&U chairman, said: “Whatever the current political uncertainty, particularly over Brexit, and despite a forecast slowing economy, demand for S&U’s products remains very robust. Our selective lending and continuous refinement of our underwriting underpin our debt quality and produce steady sustainable growth.
“I am pleased to see this seemingly becoming more widely recognised within the investing community; we will continue our high standards of responsible lending and the excellent performance which results from this.”
