Ultimate Finance completes £500m lending in Q1

Its results for the period showed its new business volumes rose by 12 per cent annually and it provided 320 funding facilities to new clients. 

Ultimate Finance’s bridging loan book grew by 28 per cent in a six-month period with the lender attributing this to demand for refurbishment and development finish and exit products. 

Its working capital division recorded a 25 per cent rise in new business when compared to the same period in 2022, which it said was down to a higher demand for invoice financing. 

Its asset finance arm saw a 20 per cent growth in its total loan book and new business volumes rose by 27 per cent. This included a record level of new business volumes in March. 

As of March 2023, Ultimate Finance’s working capital loan book stood at £150m, its asset finance book was £89m and the bridging finance loan book was £41m. 

‘Game changing events’ 

Josh Levy, CEO of Ultimate Finance, said he was pleased with the rate at which the lender was able to provide funding to UK SMEs. 

He said he had noted the impact of “game changing events” such as the quick rise to a higher interest rate environment and geopolitical developments. 

Levy added: “Whilst the recent failures of banks such as Credit Suisse and Silicon Valley Bank brought back memories of the financial crisis in 2008, we don’t see significant systemic pressures and are not viewing this as a game changing event in the same way. That said, whilst the immediate banking crisis risk appears to be over, there will likely be a lingering impact in terms of a tightening of credit conditions with meaningful fund flows out of bank deposits into money market funds putting pressure on banks to hold back on some lending to households and businesses.  

“These incidents have once again shown the hidden vulnerabilities that can exist in the stability of financial institutions and a reminder of the significant value that should be placed on a lender’s funding strength and liquidity profile.” 

Levy said the backdrop remained challenging but SMEs were still resilient and the specialist lending market was “buoyant and liquid, with lots of capacity to lend”. 

“Our loan book continues to perform well and whilst there are increasing examples of external factors putting pressure on clients, the ability to remain flexible and adapt requirements to individual borrower needs will keep enabling specialist lenders like ourselves to fill any funding gaps that emerge,” he added. 

Levy said: “A concern coming into this year is how SME demand for finance would hold up in the face of overall uncertainty and a higher cost of borrowing, but the adviser and broker community has played a key role in supporting borrower demand and giving businesses confidence to pursue available opportunities with the assurance that funding availability remains plentiful.  

“We expect the rest of this year to remain focused on a greater use of strategic funding options to support working capital and investment needs, and we are confident in the value of our solutions such as working capital, asset and bridging finance, as well as our asset-based lending structured finance option.”