Year old lender George Banco has revealed it is to make its guarantor loans available via brokers in the motor trade sector.
The company will be offering straight loans of up to £7,500 for cars, provided the consumer is able to provide a suitable guarantor.
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According to the company’s website, it offers a representative APR of 62.0%. There are no deposit requirements or limits on the age or mileage of the vehicle.
In order to push its motor offerings the company has recruited Robin Bridge to its senior management team.
Bridge was formerly chief executive offer of car supermarket CarCraft. He had been at the company for 17 years, during which it grew from a single outlet to a multi-site operator.
In a statement, Banco said Bridge felt mainstream lenders were presenting an ‘increasingly serious threat’ to dealers by declining customers solely on the basis of a credit check, which he said failed to distinguish between serial defaulters and those with historic credit blemishes who have now stabilised their financial situation.
According to the statement, Banco is able to mitigate some of these problems by assessing the ability of both the borrower and the guarantor in being able to afford repayments
Bridge said: "Even this long after the banking crisis, car retailers are still having to tell growing numbers of customers that their traditional credit lines are not available to them."
"There is a clear need for an alternative lending resource which doesn’t rely on a black-and-white reading of a credit report, and doesn’t penalise those who can demonstrate affordability."
