The company said it accounts for 2% of the motor finance market by volume. Credit: Monthira / Shutterstock.

Startline Motor Finance has obtained a five-year credit facility worth £475m ($583m) from the US-based investment bank JP Morgan.

The UK-based specialist finance provider said the deal marks the sixth renewal and upsize of its type between the two companies.

The agreement follows the issuance of two securitisations listed on the London Stock Exchange, totalling £747m.

Set up in 2013, Startline serves 80,000 customers and manages more than £625m in assets. The company employs 230 people at its Skypark offices in Glasgow.

Startline provides near-prime solutions to approximately half of the UK’s top 50 franchise dealers and 70% of the top 50 independent car retailers by turnover.

The company said it accounts for 2% of the motor finance market by volume. In the medium term, Startline aims to increase its market share to 3%.

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Startline has been supporting this goal with initiatives, including investments in technology. 

Recent technological advancements include a business portal for dealers, biometric e-Sign for faster credit agreement processing, and AI-style robotic process automation.

Startline CEO Paul Burgess said: “A five-year deal of this kind is quite unusual in the motor finance sector and, we believe, is a vote of confidence and ensures a strong funding base for the future of the company, especially following our recent oversubscribed securitisation.

“The new credit facility and the securitisation – together with the potential use of mezzanine funding – represents a strategy designed to help us make more efficient use of capital and diversify our funding. We have the right mix to support continued expansion, we believe.”

In September 2024, Startline began offering its full range of hire purchase and personal contract purchase plans for electric cars, with rates and conditions identical to petrol and diesel models.

Burgess mentioned that the company has closely observed the used electric car market over the past few years, describing it as a ‘rollercoaster’ with sharp declines.

However, he believes the market has now stabilised enough to justify their involvement.

Burgess added: “While it is still early days, used electric car sales are set to rise exponentially over the next few years and our move into this sector has been welcomed by dealers and their customers.”

JP Morgan co-head of Northern Europe ABS Rob Tanna-Smith said: “We have been funding Startline for seven years now and are pleased to renew this facility to support their journey in the motor finance sector.”