Financial services provider, The Funding Corporation has secured a GBP115 million funding round, one of the largest funding rounds for a financial start-up in the UK. Local organisations and high profile investors participated in the round which included a GBP90 million facility from Barclays Bank and a strategic investment of GBP25 million from IM Group, one of the UK’s largest companies, which has business interests ranging from motor vehicle imports to property.
Based in Chester Business Park, UK, The Funding Corporation is a new independent financial services organisation offering personal loans and other financial products via third party organisations. It will provide point-of-sale hire purchase finance and related products to motor and leisure retail dealerships, and adopt the brands and databases of employee and member ship groups nationwide to market flexible loans.
The business is forecast to generate over GBP1 billion worth of loans in its first five years offering finance through non-franchised dealers, as well as franchised operations such as used vehicle outlets nationwide. Over 100 financial sales jobs are expected to be created in the coming months in anticipation of the opening of the business in September this year.
The founders have worked together for over 15 years and were responsible for establishing Bank of Scotland’s largest subsidiary, Capital Bank. Former general manager of Capital Bank, Jim Rowley will be managing director, David Titmuss will be marketing director and Roger Halliwell, finance director.
“The financial services market has become increasingly dominated by large organisations,” said Rowley. “It’s a situation that has presented us with a major opportunity. We’ll be providing increased service specialisation, combined with a greater level of quality, flexibility and consistency.” He adds that these are qualities that every finance provider aspires to, but perhaps only an independent, highly focused company is able to deliver with the consistency that is required.