UTB launches block discounting service to help fund non-bank lenders

The venture will be headed up by UTB’s Julian Mellors (pictured) and was soft launched in October 2023.

The company said that it has several live facilities with small and medium-sized independent asset finance companies and is in various “stages of negotiation” with more partners.

The lender said it was targeting relationships with asset finance companies funding lease, hire purchase and loan contracts, and aims to pay out facility drawdowns on a same-day service.

Julian Mellors, head of block discounting at UTB, said: “Block discounting is a very good funding method for small and medium-sized non-bank finance companies. UTB has been considering entering this sector since last year as part of its product and market diversification strategy, and I was delighted to be selected to lead the creation of this new venture for the bank.

“We have designed our launch offering, which we will develop further over time, to cover most of the requirements of larger and small commercial asset finance lenders.”

Earlier this month, UTB expanded its residential and buy-to-let (BTL) range to include new-build properties.