Secure Trust Bank sets aside £100m for COOM launch
The product has been designed to help business owners looking to purchase or re-mortgage a property for commercial use including mixed-use properties, such as shops and offices that incorporate living accommodation.
Paul Marston, managing director at Secure Trust Bank business and commercial, said: “We are really pleased to be launching this new product to the market and it will have a significant impact for the clients and introducers that we work with.
“Owning your own trading premises, as opposed to renting is hugely attractive and it acts as a sound investment. The benefits can include having a much stronger balance sheet over time.
“With our extended offering, we can now look to refinance existing premises and other physical assets, such as plant equipment and commercial vehicles. This can be used to help improve a business’ cashflow as it expands.”
The COOM product adds to Secure Trust Bank’s asset finance division by extending the firm’s range of asset-based lending solutions. The aim is to provide SMEs with a sustainable and cost-effective way to buy and refinance physical assets, which includes plant equipment, commercial vehicles and machinery, in addition to trading premises.
The challenger bank has dedicated two funds to support this new offering, with £50m allocated to each.
Its Rent to Own Fund will allow trading businesses to use a COOM to buy their own premises, as opposed to renting.
And the Refinance for Growth Fund will help businesses to refinance assets they already own, such as a property, so that cash can be spent elsewhere in the business to support growth.
Secure Trust Bank, which is listed on AIM, launched its business and commercial arm in September last year, which comprises commercial finance, asset finance and real estate finance. It can now arrange business funding of up to 80% loan to property value and offers a maximum 25-year amortisation period.