1pm plc (LON:OPM), the AIM listed independent specialist finance provider, has today announced that it has further increased its back-to-back invoice finance funding facility with NatWest by an additional £5.0m to £42.0m. The facility will be used exclusively for the purpose of lending to UK businesses and provides the Group’s two invoice finance businesses, Positive Cashflow Finance and Gener8 Finance, with additional funding to meet demand from their growing number of SME clients.
Over the twelve months since 31 January 2019, the combined invoice finance businesses have achieved steady growth in client numbers and funds advanced to clients during this period have increased by 9%. Both businesses continue to experience robust demand.
In addition, under the expanded Medium-Term Loan Note (“MTNs”) Programme, announced on 26 November 2019, the Group has now completed two issuances of loan notes, specifically for the Group’s Loans Division, totalling £5.0m. These MTNs have been placed with institutional funders. A total of £8.8m of MTNs have now been issued.
The term lengths of the funding facilities for the Group’s lease and loans divisions are largely “matched” with the term of the lending provided to UK SMEs. As such, the funding amortises over the duration of the lease or loan term, which is typically three years and is not impacted by interest rate changes. This matching practice and fixed interest rate policy are key elements of the Group’s risk management and governance.
James Roberts, Chief Financial Officer, commented:
“I am delighted that the Group has further strengthened its long-standing relationship with NatWest which continues to thrive and expand in our invoice finance division.
“We have substantial funding facilities in place across all our lending divisions and I believe these facilities are reflective of the positive working relationships with our funding partners and our position within the marketplace. The provision of larger and more flexible facilities enables us to increase our ability to grow whilst maintaining margins and make available further funding for UK businesses.”