Investec Asset Finance Group has increased its block discounting facility with Haydock Finance to £10m.
The Blackburn-based lender was one of Investec’s first clients when the bank established its specialist block discounting offering in 2013. The first deal, for a £750,000 facility, has been increased several times, with the most recent arrangement taking Investec into one of Haydock’s larger lenders.
Founded in 1980, Haydock is an asset finance company specialising in assisting SMEs with the hire purchase, leasing and refinancing of hard assets such as commercial vehicles, industrial plant, machine tools and agricultural equipment.
Osian Rees, Head of Wholesale Lending at Investec, said: “The size of the facility with Haydock has grown significantly since we first started working with them in 2013, and we like to grow with our clients. Whatever the size of the first facility, clients with a strong track record and experienced leadership team can expect it to increase.
"As an asset finance company ourselves, we understand the needs of those independent asset finance businesses that we lend to through our block discounting division. We do not provide one-size-fits-all facilities laden with covenants, but work to understand our clients, providing the best arrangement while building a long-term relationship, without compromising Investec’s high lending standards.”
Steve Worrall, Managing Director at Haydock, said: “As we’ve increased receivables to over £100m gross, the need for finance facilities has increased also and Investec was a natural choice, given the consistency of service and highly experienced team.
"As before, the process was smooth and painless, and at the end we had the deal we needed structured in the way we wanted: Investec’s willingness to discuss the covenant package and adjust in line with our track record was a definite plus.”