Carmoola completes £100m debt deal with NatWest
UK-based car financing fintech Carmoola has secured a £100m debt deal with NatWest.
Carmoola says the money will help fund its growth ambitions, including broadening its customer base.
It has projected the delivery of billions of pounds worth of loan originations over the next five years.
Read more: Macquarie exits car lending to focus on mortgages
The deal comes amid regulatory pressure on the wider car financing industry, as the Financial Conduct Authority (FCA) investigates the extent of historical discretionary commission arrangements in car financing.
“This partnership not only enhances our ability to offer dealership-beating rates, but also underscores a shift in the industry. The future of car financing is direct-to-consumer, and we are at the forefront of this change,” said Carmoola founder and chief executive Aidan Rushby.
“Our goal is to make car financing as straightforward, transparent, and cost-effective as possible, and this deal will help us do that for even more car buyers.”
Read more: Carmoola appoints Deutsche Bank MD as capital markets boss
Carmoola’s direct-to-consumer approach promises borrowers better rates, by removing the fees and commissions often associated with traditional car financing, some of which have come under scrutiny by the FCA.
NatWest managing director and head of speciality finance George Ross said: “We’re proud to partner with Carmoola, who are doing great things in the car finance industry and driving innovation in the sector.
“This £100m deal is a vote of confidence in Carmoola and a commitment to the financial wellbeing of car buyers across the UK.”
Read more: Nucleus raises £200m from NatWest to boost SME lending
