It is the third renewal and upsize of the facility between the two companies, following the original close of the financing at the end of 2017.

Paul Burgess, CEO at Startline, explained that his company had effectively created a market niche in recent years with its flexible approach to the motor finance sector and during the past few months had seen record levels of business, despite the coronavirus pandemic.

Paul Burgess, CEO, said: “We’re very pleased to sign this deal. Even since the last facility from J.P.Morgan last year, we have seen our workforce increase from 80 to 130 and our new business volumes increase by 20%. Startline is very much in a growth phase.

“The specific lending philosophy that we have pioneered in the motor finance sector is increasingly coming into its own, thanks both to greater understanding of our proposition from introducers such as dealers and to current economic conditions.”

Paul explained that Startline’s flexible approach to lending, designed to be used when a mainstream prime lender declined an applicant, had increasing relevance.

“Certainly, it’s no secret that prime lenders have been tightening their criteria in recent months as a direct result of the coronavirus situation and this undoubtedly creates new opportunities for a company such as ours, with a motor finance product range designed to sit just behind frontline lenders as part of a structured lending panel.

“We’ve always believed that it makes no sense and is unfair that buyers who fall slightly below prime lender requirements that they very often end up using sub-prime offerings, with the poor costs and conditions that implies. There should be other options.

“In recent years, with a shifting social and economic landscape signifying changes in home ownership and employment patterns, we’ve heavily promoted the fact that a move towards products like ours makes absolute sense. With the likely negative economic effects of the pandemic on the economy and car buyers, this will become even more apparent.

“What we do at Startline is treat the applicant as an individual. Of course, we have some hard lending rules but in areas where other lenders take a black-and-white approach, we will take a look at each individual in more detail and, as a result, can offer APRs and terms that are comparable with traditional prime lenders. It’s a fair and balanced approach.”