Secure Trust Bank, parent of the West
Midlands-based non-prime specialists Moneyway, has secured £25m in
capital investment since opening on the Alternative Investment
Market (AIM) on 31 October.
The capital raised will be put in to
acquisitions and growth as the bank, active in retail point of sale
finance and personal unsecured lending alongside motor finance,
funds its lending through money in customer accounts.
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David Nield, lending director at Secure Trust
Bank, said: “It’s not liquidity for lending. Moneyway is the
trading arm of Secure Trust Bank. As a lender you need both capital
and fundraising. We raise liquidity through cash deposits.”
The step in to AIM, with Hawkpoint Partners as
nominated advisor and Collins Stewart Europe as nominated broker,
is a move to secure the capital to expand Secure Trust Bank and
Moneyway.
“We’re not reliant on other banks,” said
Nield. “We have to point our own capital in to lending. The £25m is
capital for the business. We’re in a very strong position because
we’re not trying to renew.”
The AIM is the London Stock Exchange’s
international market for small and medium enterprises which 3,000
companies have joined since 1995.
Begun in 2009, Secure Trust Bank and its car
finance operation has grown in the wake of the credit turmoil of
2008 and the expansion of the non-prime market and now manages an
outstanding loan book of £48.4m based on financing vehicles under
10 years old, valued at £15,000 or less and with less than
100,000 miles on the clock.
An extended interview with David Nield
will appear in this month’s Motor Finance magazine.
richard.brown@vrlfinancialnews.com
