Carmoola, a car finance firm, has secured a significant £100m loan from NatWest, adding to its existing debt.
- The new loan follows previous financial arrangements including a £50m senior revolving credit facility.
- Carmoola aims to leverage this financing to expand its customer base and increase loan originations.
- The fintech’s revenues rose to £2.7m in 2023, although losses doubled and debt financing costs increased.
- NatWest’s support signifies confidence in Carmoola’s innovative approach to car financing.
Carmoola, a fintech company in the car finance sector, has recently obtained an additional £100 million loan from the high street bank, NatWest. This loan adds to the company’s existing debt structure, which includes refinancing £31 million in loans last year, a £50 million senior revolving credit facility with an option to extend by £25 million, and a junior revolving credit facility extendable by £10 million.
The London-based firm plans to utilise the new financial support to broaden its customer base. It anticipates substantial growth, with expectations to achieve billions of pounds in loan originations over the forthcoming five years. Aidan Rushby, founder and CEO of Carmoola, highlighted the company’s commitment to customer-centric services, stating, “Through this new deal with NatWest, we’re again showing our commitment to putting customers first, at a time when our hassle-free and user-friendly approach is needed more than ever.”
Despite reporting a revenue increase to over £2.7 million in 2023, doubling its previous year’s performance, Carmoola experienced a doubling of its losses to £7.4 million. The cost associated with financing its debt quadrupled to £2 million, reflecting the increased financial burden on the company.
NatWest’s managing director and head of speciality finance, George Ross, expressed strong support for Carmoola, noting, “We’re proud to partner with Carmoola, who are doing great things in the car finance industry and driving innovation in the sector. This £100 million deal is a vote of confidence in Carmoola and a commitment to the financial wellbeing of car buyers across the UK.”
The new loan from NatWest reinforces Carmoola’s position in the car finance market while highlighting ongoing financial challenges.
