Peer-to-peer lender buys vehicle finance business

A Leicester-based vehicle finance firm has been sold out of administration to a peer-to-peer lender.

As we previously reported, Vehicle Trading Group appointed Jason Bell and Eddie Williams of Grant Thornton as administrators on May 2.

Vehicle Trading Group has its head office in Leicester and operated as a holding and investment company providing finance to two specialist motor finance provider subsidiaries, Vehicle Stocking Limited and Vehicle Credit Limited.

Despite Vehicle Credit saying on its website it employs nearly 100 staff on its website, administrators from Grant Thornton said the company had no direct employees and both subsidiaries were sold immediately upon appointment to peer-to-peer lending business, RateSetter.

RateSetter says it intends to rebrand both businesses and invest in them.

Vehicle Trading Group experienced financing challenges and the directors of the company had no alternative other than to place the company into administration.

Williams said: “Although the underlying motor finance businesses have been growing strongly over a number of years, the funding of that growth threatened the viability of the group. The sale provides a solid base to fund the future performance of the businesses.”