North Western UK asset finance company Praetura Asset Finance has expanded its operations to Northern Ireland eight months after starting business.

Speaking to Leasing Life, Mike Hartley, managing director, said the region was severely underserved by other, older players, and that native Northern Irish banks were still in disarray from the credit crisis.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

He said: "To go into Northern Ireland scares off a lot people unless you’ve got day-to-day coverage. You’ve got to be there and know what the market is about."

Initially, Praetura set up relationships with a small amount of brokers in what Hartley described as an "agency type relationship."
This allowed the company to start off small, and expand out as business increased. Now, Hartley says "We’ve got 4 working relationships. We’re writing somewhere in the region of £500,000 a month in Northern Ireland. Every single deal is an asset back deal."

To put the figure in context, Praetura are looking to write £3m to £3.5m a month worth of business in the UK, including Northern Ireland.

The Northern Irish figure may expand, as Hartley says "We’re just finding our feet, but it will develop, and there is no reason why it won’t reach a £1m on a monthly basis, the only thing stopping me at the moment is the funding into this business. We’re just scratching the surface."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

He also predicts there could be new players coming to the Northern Irish market in the future. He said "Northern Ireland is part of the United Kingdom, and it’s under serviced. There are some good businesses and good people, and we feel it’s a good opportunity. We’re North West based, so it takes me as long to get to London as there.

First year performance

Hartley also told Leasing Life that the company had done just over £11m worth of funds as of the end of July, which put Praetura on track for Hartley’s target of lending £22m in its first year.

He said: "We’re adding people to the sales team to increase the flow of business. We’re gathering momentum in the professional market. That is a really underserved part of the market. Brokers are also using us more and more."

In year two, the company aims to do £36m worth of business. In order to achieve this growth, the lender has hired a number of senior people, including several who have worked with Hartley in the past, and the company is also beginning to look to youth for future hires, including a new graduate program.

Describing the companies aims, Hartley says: "Asset finance has always been seen as a specific product- so a man buys a van so he borrows money for it. What we’re trying to do is change the way people think about this so asset finance is a cash flow alternative as well."