Car Loan 4U on the high road to growth with £8m investment
FAST-growing Cheshire-based vehicle finance company Car Loan 4U is revving up its growth plans with an £8m funding deal from a private equity firm.
The 150-strong Macclesfield-based company, has wooed investment from Scottish Equity Partners and plans to quadruple its turnover to more than £40m over the next four years.
Launched in 2006, Car Loan 4U provides an online service for consumers looking for car finance, and has experienced its most successful period of growth over the last 12 months with turnover growing by more than 75% to £11m.
In the last month it has brokered loans of £13.3m.
Chief executive James Wilkinson said: “The investment from SEP represents a landmark for Car Loan 4U and will be invaluable in helping us continue our ambition of revolutionising the market, by transforming the way consumers take out car finance online.
“It comes at an exciting time in the company’s history, and the extensive digital technology experience of SEP makes them the perfect partner for us to develop our strong growth. We have expansion plans across the board and in a short space of time, have evolved from a small business exploiting a gap in the market to emerge as a clear leader in our sector.”
Frank Shephard, head of corporate in the North West, led the deal at DWF and commented: “This investment will allow Car Loan 4U to accelerate innovations in its technology, set a new industry standard for the way consumers shop online for car finance and expand its brand, all of which will enable the company to deliver an improved customer experience.
“The deal continues the team’s focus on technology based businesses with the opportunity for significant growth.”
Mr Shephard was assisted by director Lisa Stavropoulos and senior solicitor Helen Mather.
Andrew Davison, a partner at SEP, will also join the company’s board. He said: “Car Loan 4U has been self-funded to date and we have been impressed by the fact that it has consistently grown revenues to become the UK’s leading provider of online used car finance.
“There is a great opportunity, with seven million used cars being sold in the UK last year involving £8 billion of dealer arranged finance across an estimated 845,000 deals. Our investment will enable the company to increase its brand awareness, allowing it to capitalise on the trend towards greater online loan provision.”
Hugh Campbell, managing partner of GP Bullhound, the technology investment bank, acted as the exclusive financial adviser to Car Loan 4U in the deal.
