UK-based asset finance specialist Haydock Finance has announced block discounting with investment manager Downing LLP, the company said in a statement.

Haydock said the facility will enable the SME lender to broaden its reach to provide hire-purchase, leasing and refinance for business assets to UK firms wanting to invest and grow.

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Under such a loan arrangement, a “block” of underlying customer agreements make up the security for the loan and the cash flow of the block loan is matched by the aggregate of the receipts under the agreements.

Throughout the pandemic, Haydock has maintained its commitment to providing SMEs with asset financing, which has led to a large number of applications. This additional funding will help Haydock to increase lending in line with this demand and pursue its growth strategy, the statement said. 

London-based Downing LLP (www.downing.co.uk) is an investment management business with over 30 years’ experience and in excess of £1.1bn of funds under management. Downing has an established lending business, which it expects to grow significantly this year, and this first block transaction will assist its growth in this specialist segment of the market.  

Steve Worrall, operations director at Haydock, said: “The team at Haydock is pleased to be recognised as the first block customer of Downing, who have demonstrated a flexible approach by providing a unique commercial funding solution to satisfy our specific year-end needs.”

Ian Allder, investment director and head of block discounting at Downing, said: “Downing’s entry into the block discounting market reflects our successful history of innovation as a business and this partnership with Haydock illustrates our capacity to serve top-tier players.

“Our flexible and commercial approach, alongside our ability to meet Haydock’s specific requirements, delivered the best solution as efficiently as possible and we are delighted to support them and, indirectly, thousands of UK SMEs.”

In December 2020, British Business Investments (BBI), a commercial subsidiary of the British Business Bank, announced a three-year £25m block discounting agreement with Haydock, while in September 2020, Haydock announced a £5m block discounting agreement with Wesleyan Bank.

British Business Investments inks £25m block discounting agreement with Haydock

Haydock Finance secures £5m block discounting facility with Wesleyan