Car finance firm Carmoola has added to its debt pile after securing a new £100m loan from high street bank NatWest.
The new financing adds to the company’s £31m in loans which were refinanced last year, a £50m senior revolving credit facility with the option to extend it by another £25m, and a further junior revolving credit facility extendable by £10m, according to details disclosed in the company’s accounts filed last month. Carmoola refused to disclose any details about the new term loan to UKTN.
The London-based business said it will use the extra finance to grow its customer base and now expects to deliver billions of pounds worth of loan originations over the next five years.
Aidan Rushby, founder and CEO of Carmoola, said: “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.
“We’ve been working on this partnership for some time, and I am so excited that we can now provide our customers with even more amazing rates. 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.”
Carmoola reported a surge in revenues to top £2.7m in 2023 as the fintech boosted customer numbers. But the company’s losses doubled to £7.4m over the period and the costs of financing its debt quadrupled to £2m.
George Ross, managing director and head of speciality finance at NatWest, 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 £100 million deal is a vote of confidence in Carmoola and a commitment to the financial wellbeing of car buyers across the UK.”