iO Finance Companions acquires Seneca Commerce Finance in £40m deal

Seneca Commerce Finance, a UK-based inventory finance supplier for SMEs, has been acquired by iO Finance Companions in a £40m ($53.29m) deal.

The sale marks the departure of Seneca Companions, which supported subsidiary Seneca Commerce Companions to grow to be a “main supplier” of commerce finance to SMEs within the UK.

Established in 2016, Seneca Commerce Companions relies in Manchester and has a group of 12 folks, led by administrators Chris Divers, Chris Williams, and Mark McGuire.

The enterprise at present manages slightly below 300 corporations, providing a most facility of £300,000, with typical loans round £100,000.

Seneca Companions director Tim Murphy stated: “Since we backed Chris Divers, Chris Williams and Mark McGuire almost 9 years in the past, they’ve gone on to construct the main supplier of Commerce Finance to UK SMEs.

“The time is now proper for us to exit, and we have now little doubt the enterprise will proceed to thrive beneath the brand new possession construction, and we want the group each success sooner or later.”

Divers stated: “Since forming this enterprise, the assist from Seneca has been top notch and has enabled us to create a enterprise which has grow to be the UK’s main SME inventory funder, permitting companies to show stock into revenue quicker. Becoming a member of iO will give us scale, attain, and innovation energy. Collectively, we will allow much more SMEs to entry essential progress capital.”

iO is a newly launched personal credit score platform that goals to fill a funding hole within the UK market.

Led by CEO Mike Ellwood and group managing director James Shore, iO plans to amass three various finance suppliers.

In a separate assertion, BP Marsh stated it has invested £10m in iO, securing an 8% share via a mixture of most popular and abnormal shares.

Janus Henderson, an asset supervisor listed on the NYSE, additionally co-invested £10m beneath the identical phrases.

Commenting on the funding, Shore stated: “In response to the rising issue confronted by various lenders in accessing standard monetary markets, iO will provide a strategic resolution to bridge the funding hole that has emerged as excessive avenue banks reduce on lending to SMEs.

“iO is making a one-stop platform exploiting the rising demand in personal credit score, and our strategic acquisitions will allow us to ship on each our guarantees of making fascinating and diversified merchandise to traders, while supporting the urgent financing wants of UK SMEs.”

“iO Finance Companions acquires Seneca Commerce Finance in £40m deal” was initially created and revealed by Leasing Life, a GlobalData owned model.

The knowledge on this web site has been included in good religion for normal informational functions solely. It’s not meant to quantity to recommendation on which it is best to rely, and we give no illustration, guarantee or assure, whether or not categorical or implied as to its accuracy or completeness. You have to receive skilled or specialist recommendation earlier than taking, or refraining from, any motion on the idea of the content material on our web site.