igroup is to make a push into the commercial lending market in the autumn, targeting small to medium-sized businesses, writes Catherine Tennant.
The lender is looking to enter the market in November with the launch of a specifically targeted commercial loan product.
Tony Yorke, head of corporate communications at igroup, said: “We are opening up new fronts and looking at developing corporate deals with third parties, namely corporate lending targeting small to medium-sized enterprises (SMEs) with an average loan size of £150,000.
“The key thing for igroup at the moment is to grow to reach our target of originating £100m a month, with izone, our broker website, on course to be handling half of that. Then the second phase will be to look at corporate deals.”
Yorke added: “This will be commercial lending with a difference. We are not going to penalise the self-employed or SMEs who are often charged two to four basis points over the normal rate.
“We will lend on an equity basis and charge the same as our residential loans.”
l Business finance specialist ASC Partnership has launched Flexible Investment Property Finance, a flexible commercial loan in association with an undisclosed major bank.
The product offers finance from £75,000-£250,000 for a period up to five years, with no capital repayments required.
To be eligible there must be a minimum of five years left on the lease, good covenants and rental income history.
Contact: 020 7616 6620