Moneyway, the lending division of Secure Trust Bank plc, has entered the motor retail sector with what it believes is a new approach that will appeal to dealers.
David Nield, head of Moneyway asset finance and lending, said: “We call it near prime. We see a gap in the market for lending to people who have every intention of repaying loans, but who find it difficult to borrow money to buy a car.”
Secure Trust Bank, part of Arbuthnot Banking Group, raises funds through deposits in the traditional banking way, said Nield.
“We are well positioned to enter motor retail as some players are forced to exit or consolidate,” he said. “I believe dealers will welcome our new approach.”
Moneyway has branches in Birmingham, Coventry, Manchester and Cannock. The business is based on managing the out-goings of around 40,000 people so that their bills are paid on time.
Moneyway has recruited seven account managers to hire dealers and work with them. Nield said about 100 dealers have been recruited.
The immediate ambition is to lend £15 million a year to car buyers through 350 retailers.
“We will recruit more account managers as we grow,” said Nield.
Moneyway’s expanding business includes the acquisition of what Nield said is the UK’s biggest retail musical instrument finance business.
The business has become the preferred lender for Unison (1.4 million members) and the Civil Servants Motoring Association (400,000 members).