16 Dec 2021
A £292m securitisation, listed on the London Stock Exchange, has created funding for motor finance specialist Startline to embark on its next phase of expansion – including a move into used electric vehicles.
The exercise has seen the company float around three quarters of its existing debt book under the name Satus – Latin for Start – in order to open future funding sources, including a £400m committed facility from global bank J.P. Morgan over the next 18 months.
Paul Burgess, CEO at Startline, said: “Our medium term aim is to take around 3% of the entire used motor finance market, up from just over 2% currently, and this exercise is designed to place us on a sound footing to achieve this ambition.
“The securitisation attracted around 20 investors and was significantly oversubscribed, which is something of a rarity and a testament to the quality of business that the team here in Glasgow is writing.
“Notably, we can now move into electric vehicle funding, which was closed to us under our previous funding arrangements, but is clearly a key element in future growth. The business is now in an ideal position to further expand.”
Founded eight years ago, Startline is a specialist in near-prime motor finance and has developed to employ 160 people. It works with around half of the UK’s top 50 franchise dealers by turnover as well as 70% of the top 50 independent car retailers.
Paul said: “We have spent 2021 undertaking a number of initiatives designed to support our growth strategy. Importantly in the current market, investment in technology designed to support both dealers and car buyers, who increasingly purchase online, has continued.
“Also, we are keenly aware that retaining and attracting the right people has become more difficult now, and have launched a new training initiative, the Startline Academy, as well as providing mental health support to staff through our relationship with a company called Sanctus and app-based meditation through Calm. Additionally, next year, we are embarking on a programme of diversity and inclusion training, working with leading specialists, Vercida.
“We’re also conscious of our environmental responsibilities and will soon be revealing details of a new scheme to plant a tree for every motor finance deal we write, as well as other initiatives in this area. This thinking is very much in support of the used car market’s move towards electrification and a general shift towards a net zero future.”