Specialist Motor Finance (SMF) has set its sights on accelerated growth for the remainder of 2019, following a funding injection of £110m via its network of finance brokers and dealers.
The company stated that its focus will remain on an expanding sector of car buyers who are being isolated from mainstream borrowing, despite showing evidence of affordability. This will include those people completing previous loans who discover they are no longer acceptable to some traditional lenders.
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Reasons for this could include a tightened borrowing criteria or minor credit blemishes incurred during the term of the loan. As a result, customers could see their credit profile dip below the required threshold and render them ineligible for future loans.
Consequently, a number of consumers are left stranded in a middle ground of credit impairment, which is distinct from “high risk”. This is according to SMF managing director, David Challinor, who claims that such borrowers “can be accommodated within one of SMF’s 10 lending tiers where fixed APR rates vary from around 19% to 39% with no hidden fees or charges”.
Such customers do not necessarily find themselves in deep financial difficulties, with affordability checks often revealing comfortable earnings in secure employment. “These people’s circumstances do not limit their options to solely budget-priced vehicles, but some are being handicapped by possibly minor credit glitches,” continued Challinor.
Challinor refers to the SMF’s credit scoring system, which combines with a sophisticated method of calculating the affordability profile of its clients. “It means we can often provide facilities to those declined elsewhere, and also demonstrate that we have achieved the best customer outcome for that individual.”
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By GlobalDataAutomated technologies have attracted investment from SMF, helping the company to meet the short underwriting timescales required by brokers when responding to would-be borrowers. Challinor, however, acknowledges that the human element remains essential to the development of its computerised systems, as well as in providing support to its business partners.
