Non-Standard Finance secures £200m facility

Payday lender Non-Standard Finance (NSF) has entered into a new, six-year securitisation facility totalling £200m at pricing that it says is more favourable than its existing facility.
By Ismail Mulla
Published 11th Mar 2020, 07:47 BST
Updated 11th Mar 2020, 07:48 BST
Funding.Funding.
Funding.

The firm added that the new facility is expected to result in a pre-tax saving of approximately £1m in the year ended December 31, 2020.

On satisfaction of certain conditions precedent, the new facility will be available to fund continued loan book growth for the Group's fast-growing branch-based and guarantor loans divisions.

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It is also expected that the new facility, provided by credit funds managed by Ares Management Corporation, will be used to repay a proportion of the current outstanding debt under the Company's existing drawn credit facilities.

Nick Teunon, chief financial officer of NSF, said: "This new source of funding is an important milestone for the Group.

"Not only will the securitisation allow us to further diversify our funding sources, it also signals a clear recognition of the quality and confidence in the group's two largest and fastest-growing businesses."

Jeffrey Kramer, partner in Alternative Credit for Ares Management, said: "We are pleased to support the growth of NSF with this securitisation facility, which will better position the company to execute on its strategic objectives.

"This transaction is another example of Ares' ability to use flexible capital to provide tailored financing solutions across the alternative credit market."