London listed Conister Bank has acquired a 40 per cent stake in leading sub-prime asset lender The Business Lending Exchange (BLX). Conister also has in place an option to acquire the remaining issued share capital in three years’ time.
The move further strengthens the ties between the two businesses following the provision by Conister of a £4m lending facility for BLX in November 2017 – while the bank’s managing director Douglas Grant becomes a non-executive director of the company.
“We are delighted to build on our excellent working relationship with Conister Bank,” said Chris Allan, managing director of Huntingdon based BLX.
“It will help us service the desperate need there is in the UK for funding to the small business community, largely ignored by traditional lenders. They are the backbone of the British economy yet high street banks have been strangling them of finance needed to grow and create employment.”
BLX primarily lends to start-ups, sole traders and small businesses with advances of between £1,000 & £30,000. It promises to make a decision within an hour and provides money secured on assets such as vehicles or machinery.
Added Douglas Grant from Isle of Man based Conister: “The Business Lending Exchange has as its focus small scale lending to smaller businesses – a market sector that has recently witnessed a reduction in lenders. This, along with the company’s commitment to customer service will propel this business to a meaningful size in the next few years. We are pleased to be the debt provider and a major shareholder in this business and believe it will be a great bolt-on to the bank through the exercising of the option.’
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A Cambridgeshire company has secured a multi-million pound deal to help cash-strapped small and micro businesses across the UK.
Asset finance lender The Business Lending Exchange (BLX) has negotiated a £4 million funding facility with Isle of Man based Conister Bank.
Huntingdon-based BLX lends to organisations finding it difficult to secure finance elsewhere, allowing them to acquire assets or raise capital.
The new facility will immediately be put to work with BLX looking to lend to a customer base of startups, sole traders and small businesses with advances of between £1,000-£30,000.
It is also promising to give a decision within one hour of receiving an enquiry and lends money secured on assets such as vehicles and machinery. Providing funding for such a market is a passion of John Stickley who founded the company over 10 years ago.
Stickley, who has been in the finance industry since 1983, said: “I am appalled at the way the High Street Banks treat small businesses which are the backbone of the British economy by strangling them of the finance many of them need to allow the enterprises to grow and flourish. It was this attitude that prompted me to set up BLX in the first place.
“That is why I am thrilled with our new partnership with Conister Bank which will help us to meet the huge demand for our services.
“It is very satisfying to be able to make a loan, even for a few thousand pounds, to a startup business, or a sole trader as it can make a massive difference to their future prospects.”
Conister Bank managing director, Douglas Grant added: “We are delighted to help an independent lender provide vital funding to such an important market sector.
“The BLX management clearly has the same dynamic approach to lending that has been the hallmark of Conister since our inception.”
The deal between BLX and Conister was structured by Zac Cogan, managing director of Corporate Asset Solutions Ltd, a specialist provider of financial services and solutions to the sector.
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