Bumper, formerly Auto Service Finance, has secured a £10m flexible working capital facility from Secure Trust Bank Commercial Finance to help support its growth plans.
The initial funding will be used to support growth in the loan book and ensure Bumper can continue to help UK drivers spread the cost of their repair bills, it said.
The firm said that its growth follows a ‘significant increase’ in dealership partners, with more than 60% of the franchised market in the UK now using its platform, and the growing adoption of ‘Buy Now Pay Later’ (BNPL) to fund purchases.
Bumper said it has seen record lending month-on-month and expects to see its gross merchandise value increase by threefold in 2021.
James Jackson, chief executive officer and co-founder of Bumper, said: “Bumper is on a rapid growth trajectory, thanks to our continued increase in partner numbers, ever improving tech for dealerships, user experience for customers and our recent rebrand.
"We were keen to ensure that we partnered with a business that truly understood our market and objectives and could create a flexible facility with scope to grow with us.
"Secure Trust has invested time in getting to know the business, created a flexible facility that works for us and were able to deliver it quickly."
The new funding provision follows last month’s launch of Bumper’s service in Ireland, its first European market outside of the UK.
Last year, Vehicle Vision formed a partnership with Auto Service Finance (ASF) to offer motorists interest-free instalment payment option for repairs.