The Davenham brand has returned to the UK leasing market with the launch of Davenham Asset Finance following a management buyout and a wholesale lending facility from Shawbrook Bank.
The Davenham Group went into administration in October 2011 following a battle for survival in the wake of the 2008 financial crisis, including a £55.4m loss in 2009 caused largely by write-offs in the firm’s property portfolio.
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The company’s trade and asset finance business continued to be profitable until it stopped signing new business in July 2010.
The existing management team of Paul Burke and Heather Robinson led a buyout of the remaining loan book and have opened for new leasing business after agreeing an initial facility with Shawbrook which can be extended as the business grows.
Burke said, with Bank of England figures showing net lending fell at the beginning of 2013, the business was launching "at a time when borrowing through traditional methods continues to be difficult, creating a greater demand for fast and flexible alternative finance."
He said: "Prior to Davenham plc’s demise, following the financial crisis and subsequent property crash, the Group’s Asset and Trade Finance divisions operated successfully. I am therefore confident that we can draw on that experience to re-enter both the asset-based lending and, in the very near future, trade finance markets and build a successful business.
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By GlobalData"Having been in this sector for more than 20 years I strongly believe, together with my co-director Heather Robinson and the team, that there is a growing market for this type of funding."
