The group has also amended the terms of the facility as follows:
A new £20 million ($24 million) accordion is now in place, so that, if exercised with the consent of the lending banks, the total facility would increase to £125 million ($155 million).
The advance rate on performing loans has been increased from 65% previously to 70%, thereby enabling Everyday Loans to increase its borrowing against its performing loan book (at 31 December 2016 the loan book was £122.4 million ($151 million) before fair value adjustments).
The amended facility has been extended from December 2018 to March 2020.
CFO Nick Teunon said, “With committed funding now totaling £115 million ($142 million)and an option to increase this to £140 million ($173 million), with the consent of our lending banks, the group is well-funded to deliver our growth plans over the next few years.”
Non-Standard Finance was established to acquire and grow businesses in the UK’s non-standard consumer finance sector. On December 4, 2015 the company entered into an agreement to acquire Everyday Loans, the branch-based unsecured lending and guaranteed loans business of Secure Trust Bank.