New loan facility for listed home credit provider

Non-standard financial services provider, Morses Club, has secured an extension of its revolving credit facility with its existing funding syndicate until the end of November 2021.

The Birstall-headquartered company has agreed a reduction in the level of the facility from £50m to £40m to better reflect the requirements of the business over the next 18 months.

Morses Club said it anticipates some deleveraging of the business driven by decreased sales volumes due to COVID-19. In the last year this additional £10m headroom has not been used.

The company was advised on the extension of the RCF by finnCap Ltd’s debt advisory team.

Customer response to Morses Club’s recently launched remote lending product has been positive, according to the firm. 100,000 customers are now registered to use the online customer portal.

Morses Club says it has decided not to furlough any of its employees, and all its staff and agents are continuing to work remotely in support of customers.

Paul Smith, chief executive officer of the business, said: “I am delighted that we have secured a new loan facility and that our three existing funders continue to support the business during this challenging period, demonstrating their confidence in Morses Club and our growth and digital diversification strategy.

“The new loan facility provides us with sufficient funding to meet our requirements including expanding our product offering as we address the evolving needs of our customers.”