Upfront Car Finance gets backing from UK Bond Network

By Lisa Walls-Hester on 19th September 2016

P2P/Marketplace Lending

Upfront Car Finance plc, a specialist vehicle finance provider for Uber drivers, has secured £3.5m of funding from peer-to-peer bond platform UK Bond Network.

Upfront Car Finance gets backing from UK Bond Network

Upfront is a driver-centric, flexible and secured car finance product for hybrid vehicles, which uses Uber earnings data to form lending decisions. It emerged from the challenge of a large churn rate among Uber drivers due to high vehicle rental cost.

The concept was developed and tested with a small number of vehicles and then further expanded to a healthy pipeline of drivers before Upfront approached UK Bond Network to source a strategic finance solution which would help grow the business.

Upfront’s finance solution comprises two bonds: a £450,000 senior secured bond (Series A) paying nine per cent and a £50,000 subordinated secured bond (Series B) paying 20 per cent. Both series have a three-year maturity and are secured against tangible assets.

Jonathan Samuels, CEO, and founder of Upfront Car Finance said: UK Bond Network provided a novel finance solution at an important time for our business. With a driver pipeline greater than cars available, the funding will help us to deploy more vehicles and scale more quickly; UK Bond Network offered what we wanted, with the added benefit of certainty of funding.”

Chris Maule, CEO and founder of UK Bond Network, added: “Upfront Car Finance is the sort of business we’re increasingly used to helping, a highly innovative, high potential SME in a growth sector, led by able and well-qualified people such as Jonathan and his team. We’re delighted to be assisting Upfront in achieving its growth goals, whilst providing investors with some much-needed yield in the current meagre interest rate environment.”

Comments

AltFi Amsterdam Summit 2018

AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.

5th November 2018


Companies in this Article:

UK Bond Network

People in this Article: