UK broker Shire Leasing has begun facilitating broker-to-broker business and has signed "master broker" agreements with a number of funding partners.
Shire will also take some deals onto its own book and offer smaller brokers IT and administrative support so they can access block funding for their own books.
Go deeper with GlobalData
Mark Picken, managing director of Shire, said, although existing and new-entrant lenders are funding a lot of business there is still a funding gap in the broker-introduced market following the exit of ING Lease in 2012.
He said some business remains "orphaned" because funders either do not have the appetite or are unable to process the volume of deals which has left "many brokers without a home for their much-nurtured business".
He said: "Shire Leasing is well positioned to offer its own funding facilities to UK brokers who are currently the lifeline to UK SMEs funding needs."
Shire will use its own book to write business introduced by other brokers and provide brokers with facilities from its own funding partners which they might not normally access.
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.
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‘Missing piece’
Lease funders Hitachi Capital Business Finance and Shawbrook Corporate Asset Finance have both agreed "master broker" deals with Shire.
Robert Gordon, chief operating officer, Hitachi Capital UK, said: "Having had a long relationship with Shire and understanding the rigorous processes and controls it has in place, Hitachi is delighted to join Shire’s panel of funders in this new venture."
Adam Tyler, chief executive of the National Association of Commercial Finance Brokers said the master broker programme was a "unique scheme" and a "missing piece in the market" which would help "smaller brokers access those funders they would otherwise miss" while "retaining corporate identity".
Shire is also offering lease management services to small, "lifestyle" broker businesses which are unable to get block discounting facilities because they lack the "sophisticated, reliable, proven" systems along with the "significant volumes" which Picken said block funders often require.
Picken said: "Our own bill and collect facilities are first class and proven to all the funders and they trust them. We will bring the broker and the funder together and then provide the discreet facilities in the background.
"We will charge a small fee to the broker for this facility and provide the funder with a one-stop-shop for auditing these portfolios thus taking out significant cost for them and opening the market to a previously untapped opportunity."
