An offshore banking and finance group based in the Isle of Man has taken a majority in East Midlands car bills credit provider Payment Assist
Manx Ventures has acquired a 50.1 per cent stake in Melton Mowbray-based Payment Assist for £4 million – with an option to buy the remaining 49.9 per cent for up to £5 million more.
Payment Assist works with national chains such as National Tyres, Halfords and Formula O to provide point-of-sale finance to vehicle owners having work done.
It provided finance for over 170,000 customers last year, up 43 per cent on two years before.
It was set up by Neil Jeffery and Colin Ellard in 2013 when they saw an opportunity to help garages secure jobs by offering credit to customers unable to pay bills straight away.
Since then it has diversified lending into insured products and retail with a loan book of £21.3 million as at December 31, 2021, which was increase of 72 per cent since 2019.
Payment Assist achieved revenues of £6.6 million last year, which was up 69 per cent on 2019.
Manx has been working with Payment Assist since 2015, through its subsidiary Conister Bank – the Isle of Man’s only independent bank – which has supplied funding to help the Leicestershire company’s growth.
Payment Assist chief executive Neil Jeffery said: “I am delighted to secure a long-term partnership with the Manx Financial Group.
“We have worked well with Conister Bank over the last seven years and are confident the partnership with Manx Ventures, and continued support from Conister Bank as we grow the business, will position Payment Assist to continue to be a leading point of sale lender in the UK and support our growth into new products and sectors.”
Manx Ventures chief executive Douglas Grant said: “The joint venture with Payment Assist continues our strategy of acquiring interests in high quality specialist lenders.
“We have witnessed first-hand the growth of Payment Assist over the last seven years and the board believes that there is potential for significant further growth.
“The acquisition, with no dilution to shareholders or external funding required, will position the Company to capitalise on what we expect to be a high margin and profitable business now and in the future.
“The option positions the Company to acquire the remaining 49.9 per cent of Payment Assist at an attractive valuation if the business grows as the company expects over the next three years.
“We have started the process of engaging with the FCA to obtain their approval for the proposed change of control and will make an announcement to update the market once this is received.”
