The block discounting business has been lending for just 20 months and has seen impressive growth since its launch with aggregate block discounting facilities now standing at £150m and facility limits averaging £3m.
Across the market, draw down from block discounting facilities provides UK finance companies with an estimated £300m-£400m of funding a year for onward lending to UK SMEs. It provides these small to medium sized regional funders with relatively simple access to finance, removes some of the "on demand/refinancing" risks associated with general banking facilities, and often avoids the extra security required by banks such as charges over property and cash.
Investec's block discounting team offers a range of block discounting facilities, starting from £0.25m, based on understanding the needs of customers and establishing mutually acceptable facilities that can grow in line with the customer's balance sheet.
Mike Francis, Head of Asset Finance said:
"I am delighted with the success of the block discounting team since its launch in February 2013. Block discounting is an important part of the wider Investec strategy to create a broad loan portfolio that takes advantage of opportunities in the market while meeting the funding needs of SMEs and our network of finance brokers."
Osian Rees, Head of Block Discounting, said:
"Achieving this milestone just 20 months after launching is testament to the competitiveness of our product range, efficiency of our processing and systems, and most importantly the personal service offered by the team. We're looking forward to working with new and existing customers across the country as we continue to build the business."
