UK-based United Trust Bank (UTB) has introduced a block discounting service, providing essential funding options for non-bank lenders that do not have access to retail consumer deposits.  

In addition to having multiple active facilities with small and medium-sized independent asset finance companies, UTB’s new venture is now negotiating with more possible partners. 

Julian Mellors is leading the new services, which soft-launched in October 2023. 

Currently, the bank is focusing on fostering relationships with asset finance companies that fund lease, hire purchase, and loan contracts.  

UTB said it aims to offer a same-day service for facility drawdowns. 

UTB head of block discounting Julian Mellors said “Block Discounting is a very good funding method for small and medium-sized non-bank finance companies. UTB has been considering entering this sector since last year as part of its product and market-diversification strategy, and I was delighted to be selected to lead the creation of this new venture for the bank.  

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“We have designed our launch offering, which we will develop further over time, to cover most of the requirements of larger and small commercial asset finance lenders.”  

In 2023, UTB reported operating profit of £87.5m, up 41% from the prior year.  

Its operating income rose 34%, reaching £154.1m, while the return on equity (ROE) soared to 23.9%. 

During the 12 months under review, UTB offered £1.8bn in new financing, taking the bank’s loan book to exceed £3bn.