Shawbrook Bank’s speciality finance division has surpassed £1bn in live facilities for the first time.
The speciality finance division caters to non-bank lenders across three sectors: consumer lending, SME loan specialists, and property finance providers.
The firm has supported lenders such as Salad Money, MSP Capital, Zenzic Capital and Merchant Money.
Warren Mutch, head of speciality finance at Shawbrook, said: “This milestone demonstrates the pivotal role Shawbrook plays in supporting non-bank lenders.
“There is a sense of optimism prevailing within the industry, with businesses remaining steadfast in their commitment to supporting their end markets, despite the challenging macro environment.”
Luke Jooste, CEO of Merchant Money, added: “Shawbrook was our first port of call when we looked to set up our own funding line and they have been supportive throughout.
“Like many businesses, we had a few challenges due to Covid, but with their in-depth knowledge of the industry, the team there structured a solution that not only gave us an initial boost but also set us up on our journey.”
Shawbrook’s speciality finance team also broadened its proposition, introducing fund finance for niche and smaller funds in the UK, and platform lending for non-bank lenders to release funds tied up in loan receivables, via platform lending facilities.
Phillip Hyett, finance director of Salad Money, said: “Access to affordable credit remains a challenge for many, with credit scores often unfairly holding people back.
“We are building an alternative to high-cost credit through our innovative use of Open Banking and machine learning in assessing affordability.
“Shawbrook has demonstrated real commitment to our business, providing an initial funding line and more recently, structuring an increased facility.”
Neil Rudge, head of enterprise at Shawbrook, concluded: “We recognise the value in supporting specialist lenders who at first glance may seem to be our competition.
“However, by supporting these entities, who typically operate in very niche markets, we are able to provide the strength of our balance sheet to help those businesses to grow, thereby increasing the support and funding available to businesses and consumers throughout the UK.
“These partnerships enable us to support lenders where their scale or geographical reach is better aligned to the end customers’ needs, but they don’t have access to the funding mix that Shawbrook does.
“In these cases, via our speciality finance team, we can support them indirectly through our strategic partnerships.”
