The redemption figure covers loans that have been redeemed by the borrowers allowing Tiuta to re-invest this money into new deals.
Tiuta is confident that both monthly and quarterly performance will also improve throughout the rest of 2011 and it has a large pipeline of business based on a strong level of demand for short-term finance products.
Tiuta says the recent improvement is down to a number of factors including a new business strategy and the recent appointments of new business development staff, Gareth Lewis and Kirsty Buchanan.
The lender has however voiced disappointment in the lack of appetite of the mainstream banks to lend; it has already voiced concern that there are no signs of improvement in the banks’ lending levels to small and medium-sized businesses in particular, with most banks also unwilling to provide funding through lenders such as Tiuta who could help many more firms if this was the case.
As part of its recent business restructuring, which including a decision to completely focus on the bridging loan sector, Tiuta will provide regular quarterly updates on its lending and redemption levels.
Steven Nicholas, CEO at Tiuta, commented: “June levels of lending and redemptions have followed the same pattern as May with a continued improvement in both, and the expectation that – given our pipeline of business – we will continue to show ongoing improvement in the months ahead.
“Clearly, our restructure and review of the business is working and, in particular, there has been an immediate impact from both Gareth and Kirsty who have provided a fresh impetus to generating new business. The fact that Gareth recently won a ‘BDM of the year’ award at a recent event shows the quality we now have working for Tiuta.
“The demand for our finance is very strong given the current economic environment and in particular the lack of lending being offered by the mainstream banks. Many companies and entrepreneurs are actively seeking finance however there is still a distinct lack of appetite from the banks even at low-risk levels.
“The banks have access to relatively low-cost funding and, even if they do not want to lend directly, they could be working with lenders like ourselves to utilise these funds which means we could pass on these lower costs to the customer. This just isn’t happening and until it does, and the banks take responsibility in this market place, then we are unlikely to see any noticeable improvement in the overall economy.”