Blue Motor Finance has launched a tailored stock lending product to support SME motor dealers, following a pilot launch in January 2019.
Research conducted by the firm found that the majority of independent dealers currently feel held back by incumbent providers when trying to obtain funding to support their business.
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The SME product developed by Blue is designed to provide dealers with a simple route to accessing stock finance. Using AI technology, the lending facility will enable dealers to finance new stock investments on their forecourt in a secure manner.
In addition, the product allows users to manipulate the product so they can utilise the facility in the most effective way possible – securing stock finance on terms aligned to their individual needs.
Chris Jones, chief operating officer at Blue Motor Finance, said the new product launch marks a critical stage in the development of the company. “Independent dealers have historically had to deal with a complex and burdensome process to secure the finance they require to grow their stock. This had the dual effect of hindering both their ability to grow their business and reducing the choice available to end customers.
“With the expansion of our unique lending platform, we anticipate a decisive shift in the market, with UK motor dealers empowered to make additional investments in their businesses.”
Earlier this year, Blue Motor Finance were ranked as number one in the Financial Times’ FT1000 listing of Europe’s Fastest Growing Companies. Moving from a zero to £1bn company in the space of four years, Blue is now ranked higher than other fast-growth firms including Deliveroo, Hellofresh and Transferwise.
Bob Jones, chief executive of Blue Motor Finance, said: “It is clear that customers and dealers across the car finance market are seeking an alternative to the incumbent banks and we continue to see huge market opportunities on the horizon – this is driven by our compelling service proposition, combined with cutting edge propriety technology to minimise friction.”
In 2014, Blue Motor Finance was acquired by private equity investor Cabot Square Capital. Jones said: “The partnership with Cabot Square Capital and the new funding line will help us to meet the demand in the market for a finance provider that can address the needs of all prime borrowers, and give dealerships quick and consistent decisions.”
