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Raphael bank buys Southern Finance

Southern Finance is embarking on a drive to gain a higher share of dealer finance following its acquisition by R Raphael & Sons, a private bank.

Since 2005 it has been part of the privately owned Lenlyn Group alongside Raphael.

Miles Roberts, who joined Southern Finance as managing director in 2005, left to become chief executive of Raphaels Bank last year.

Now, Roberts intends to become more directly involved in Southern Finance again.

He is optimistic about Southern Finance’s prospects as a part of Raphaels because, he said, new funding demonstrates its continued commitment to motor finance sector.

The aim is to retain the Southern Finance brand name in the automotive business sector – Raphaels has been in the consumer finance business for several years.

“Southern Finance used to be a purely hire purchase company, but now, working with a broader spectrum of lenders, we are able to offer a much wider range of products,” said Roberts.

“Consumer appetite for flexibility hasn’t changed but, given the shrinkage in the number of motor finance companies, there is less choice for dealers and consumers.

“The motor finance market has changed radically over the last couple of years.” 

Southern Finance will continue to lend direct, but also broker finance with a number of other finance providers – though not named they are well established partners, said Roberts.

“This means we will be able to give dealers access to the complete range of finance options, from PCP and leasing to lease purchase,” he said.

“We can capitalise on the enormous consolidation that has occurred in the sector.”

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  • Mrs. Isabella Houston Macdonald - 24/04/2014 11:16

    Change or address, and, final settlement required