UK shorter term loan provider Amicus is to launch a new commercial finance business for SMEs.
Amicus Commercial Finance will provide a revolving working capital facility powered by a funding platform. The new business will focus on providing relationship-based cash flow to owner-managed businesses with annual sales of between £0.5m and £5m. The firm plans to begin operating in January 2016.
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The company will also offer "Amicus Advantage" which is a short term commercial loan structured alongside the receivables line. "Our maximum line size for any customer is unlikely to exceed £5m for the near future," the lender wrote.
Amicus Commercial Finance will be led by John Wilde and David Hogg, who built SME Invoice Finance Limited (SMEIF) which was sold to Metro Bank PLC in July 2013.
John Jenkins, chief executive officer at Amicus said: "Large bank-owned subsidiaries are currently responsible for around 85% of small business lending but due to cost savings, many of them can no longer offer the type of localised, relationship-based service that is valued by smaller firms and professional services organisations." As many of the new entrants are focussing on larger businesses, Amicus believes there is a strong opportunity to provide a new proposition that combines high-touch customer service, innovative products and a transparent fee structure, powered by the latest technology.
"The launch of Amicus Commercial Finance underlines our strategy of broadening our proposition into other specialist lending markets which are poorly served by mainstream lenders. We are delighted that John and David will be leading this business. As two of the most experienced and successful leaders in this sector they have the skills, contacts and vision to build a business that will set a new benchmark in this sector."
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By GlobalDataAmicus currently offers short term, property-based lending solutions to private and corporate borrowers, which include landlords, developers and owner-occupiers. The firm recently completed a £100m short-term mortgage-backed securitisation, the first securitisation in the UK market made up entirely of short-term property loans.
