Hire purchase lender 1st Stop Car Finance has entered into a car loan funding agreement with Conister Bank, subsidiary of Manx Financial Group, the Isle of Man-based financial services group.
1st Stop, part of the larger retail finance provider 1st Stop Group, will introduce and pre-underwrite loans on behalf of Conister Bank, which predicts a 10% increase in its loan book, with a proportionate rise in gross margin, in the first 12 months of the agreement.
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Juan Kelly, managing director of Conister Bank, which has provided savings and loans on the Isle of Man since 1935, said the deal was "a natural extension of one of our core products into the UK consumer vehicle market".
David Enright, managing director of 1st Stop, who spoke of the challenges and benefits of manually underwriting at an October 2012 Motor Finance Round Table, said the "innovative funding structure" at Conister Bank "will allow us to accelerate our growth at a time when many of the UK’s largest banks have reduced their lending appetite."
Having begun its HP division in May 2010, 1st Stop signed on with Frontline Solutions’ DealTrak system to accommodate its increased level of business at the start of 2012 and moved to larger offices in South Tyneside in September when the company began recruiting for an expanded sales and underwriting team.
richard.brown@timetric.com
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