Home collected credit lender, Morses Club has announced that the Group has secured an extension to its existing loan facility. Shawbrook Bank has increased the overall revolving facility from £25 million to £40 million.
The loan facility has also been extended from its existing expiry date of March 2019 to August 2020. This will support the growth strategy of the business, providing the certainty of long-term funding and enabling Morses Club to continue its expansion plans, taking advantage of the current opportunities in the market place.
In particular, the funding supports the growth anticipated from the c.550 self-employed agents and managers who have recently joined the Group. As well as strengthening the core business, the Company anticipates that this will lead to over 400 new agent territory builds in the current financial year. The territory builds in progress to date are performing ahead of management’s expectations set at the beginning of the year, and it is anticipated that this increased level of activity will not have an adverse impact on earnings expectations in FY18.
Paul Smith, Chief Executive Officer of Morses Club, said “We are delighted that two of the UK’s leading financial institutions have recognised the strength of our business and will be key financial partners in supporting our growth strategy going forward.”
“Our investment in technology has achieved efficiencies and created capacity that has supported significant growth in agent numbers and their successful integration into the business in the first half of this year. This new loan facility will enable us to continue to invest in growth and our product diversification strategy, whilst delivering high quality service to an increasing customer base.”
“We remain committed to our view that growth in this sector is based on a deep understanding of the non-standard customer, and delivering the needs of a changing market. We look forward to updating the market further in our Trading Update on 31 August.