Peer-to-peer lending company RateSetter has acquired sub-prime vehicle finance provider Vehicle Trading Group out of administration.
Vehicle Trading Group, which specialises in meeting the demands of customers who could not find traditional vehicle finance from main stream lenders, called in administrators from Grant Thornton on May 2nd, according to reports by Insider Media.
The company provided finance via its subsidiaries Vehicle Stocking Ltd and Vehicle Credit Ltd, but Vehicle Trading Group experienced difficulties after regulatory changes to its funding line.
The Leicester-based operation has now been sold to RateSetter, which is planning to rebrand the business, but Insider Media reported that the deal “will not impact its day-to-day operations”.
Grant Thornton's Eddie Williams said: "Although the underlying motor finance businesses have been growing strongly over a number of years, the funding of that growth under the previous regulated financing structure threatened the viability of the group.
"This sale provides a solid base to fund the future performance of Vehicle Stocking and Vehicle Credit as part of RateSetter’s other investments."