By Daniel Lanyon on 12th November 2018
The tie up between the bank and P2P lender will result in the provision of vehicle and asset finance to UK SMEs.
CODE Investing and PCF Bank, owned by AIM-listed PCF Group, have formed a strategic partnership to provide vehicle and asset finance to the UK SME sector.
PCF, launched in 1993, provides SMEs with financing to make capital investments such as vehicles, construction equipment and manufacturing equipment and has looked to significantly expand its operations since gaining a banking license last year. It currently has a portfolio of over £200m of finance receivables spread across over 14,350 customers.
As an institutional partner to CODE Investing, PCF will gain direct lending access to SMEs that require hire purchase and leasing finance. The focus will be on SMEs whose investment plans meet pre-determined criteria set by PCF.
Robert Murray, Managing Director of PCF, says that banks and other financial services providers are increasingly turning to alternative finance platforms to assist them in sourcing customers.
“We see partnerships like this one as key to the development of our business as we look to grow our portfolio from its current levels to £350m by September 2020 and £750m by September 2022."
Ayan Mitra, CEO and Founder of CODE Investing, added : “PCF are precisely the type of progressive and flexible lender that we want on our rapidly growing panel.”
CODE’s role will be to act as a filter for PCF, he says, presenting them only with pre-qualified companies that meet their criteria.
"As they increase their market share, this will ensure their growing portfolio is fully optimised and de-risked," Mitra said.
Now in its sixth year, the AltFi London Summit returns on 18th March 2019 to 155 Bishopsgate. Last year proved to be a crucial turning point for the key players building the future of finance. Leading platforms launched oversubscribed IPOs, digital banks proliferated and mainstream financial institutions started their own disruptive propositions. With 2019 certain to be another landmark year, more questions will be asked by regulators with investor interest in disruption also poised for more rapid growth.