Finance Yorkshire cash helps insurance provider ALA to mind the GAP

Malton-based ALA IB received £75,000 from the organisation, which has helped the company boost turnover by 60 per cent in the first two months of the year and realise its expansion plans.

In recent years, the company’s success selling and brokering insurance products has seen it become the largest online supplier of GAP insurance to corporate and retail sectors in the UK.

Managing director Simon England said: “GAP insurance ensures that policyholders are not left out of pocket because it covers any shortfall between the insurance payout and the amount outstanding on the finance agreement.”

ALA IB is already working in association with Auto Trader and, alongside a specialist insurance underwriter, has also designed a unique GAP insurance product for JCB Insurance Services.

But in order to develop the company further, Mr England turned to Finance Yorkshire to help.

“We were being approached by large insurance brokers who wanted to supply our new truck, tractor and plant GAP insurance products to their own commercial clients and were aware that this would be a good route to market,” he said.

“However, like many companies, we found access to the finance required to support our growth extremely difficult.”

He added: “After a series of knock-backs trying to access funding, knowing that ALA IB fitted the profile for Finance Yorkshire and that they believed in the company’s vision gave us extra confidence that we were on the right track with our business plan.”

ALA IB is now creating a business development role within the company. The funding will also enable it to develop new online systems, as well as being used for a marketing campaign and initial cashflow to set up more commercial contracts with large insurance brokers. In addition, it expects to create up to five more jobs in the next three years.

Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m.