UK finance broker LDF said it is to significantly increase the amount of broker introduced asset finance it provides to SMEs, using its own capital.
The company was formerly owned by Investec, but was acquired by private equity firm Cabot Square Capital in December 2013. The company said since then it has sharply increased the amount of funding it provides via asset finance.
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While the company previously offered some finance, it will now be able to present a wider array of offerings.
These new funding options will include SME capital expenditures in IT hardware, office refits, manufacturing and engineering equipment, plant, and commercial vehicles.
Callum Stevenson, head of strategic business development at LDF said: "The SME finance marketplace has been turbulent over the past few years, with banks sharply reducing their small business loan books, major players withdrawing from the leasing market, and brokers now facing regulation by the FCA."
"Some major banks have pulled out of leasing over the last few years – the withdrawal of ING Lease alone has reportedly taken £1 billion a year of funding out of the asset finance market."
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By GlobalData"We want to help fill that gap for SMEs and brokers by increasing the volume of leasing we write. Demand for finance from SMEs is buoyant as the economy recovers, and businesses want to invest in growth.
LDF said it has separate, dedicated systems for deals in which it acts as a funder, and those in which it acts as a broker, supporting its broker partners and ensuring transparency throughout the process.
It will fund companies from small, growing business up to larger companies with strong credit histories, and it said it hopes to become a ‘one-stop shop’ for brokers.
Stevenson said: "Our relationship with our broker partners is going to become ever closer over the coming months, and funding more deals for brokers’ SME clients will be an important part of that process."
