Blue Motor Finance and Hodge partner in new £240m funding facility

Blue Motor Finance (“Blue”) and Hodge bank (“Hodge”) have partnered on a new funding facility. The transaction will provide Blue with a stable source of funding for up to £240m, with the potential to increase and extend this facility in future, supporting Blue’s continued growth in lending to customers.
Blue continues to operate in the used car market, providing hire-purchase loans, backed by strong customer service levels, to consumers through its extensive network of dealerships and brokers. While also delivering very attractive investment opportunities underpinned by long term consistency and prudency in managing credit risk and delivery of diversified loan portfolios with relatively small average loan sizes, short durations, good security, and a history of low loss rates.
Tiku Patel, Chief Executive Officer at Blue Motor Finance Limited said: “These partnerships take considerable effort, commitment, and trust to put in place and we’re delighted to close this facility with Hodge. We look forward to a long-term relationship between our businesses. This facility shows confidence in Blue’s abilities to carefully manage credit risk, delivering robust asset performance and great customer outcomes. It will further support the growth and development of both our businesses.”
David Landen, Chief Executive Officer for Hodge said: “I’m delighted to announce our partnership with Blue, it’s a great strategic fit for Hodge complementing our existing business, and demonstrates our strong financial position and continued ambition to grow and deliver specialist solutions. We are really excited to develop the relationship with Blue over the coming months and years, building a strong long-term partnership like this means we can grow and build on our existing mortgage, commercial and savings businesses with motor finance; leveraging Blue’s advanced technology and distribution network.”

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