Central Trust's comeback gives a boost to the secured loan sector
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The secured loan market was given a boost last week with the return of secured loan lender Central Trust.
The firm has agreed terms on a £90m revolving credit facility with Royal Bank of Scotland and Nat-ional Australia Bank.
The funds will allow Central Trust to re-enter the secured lending market that it pulled out of almost two-years ago to focus on broking.
Previously, the lender offered its products through two secured loan networks but says currently it only has plans to lend through its own standalone brokerage.
As well as secured loan lending and broking, Central Trust offers mortgage broking and lending, general insurance and debt man-agement plans and individual voluntary arrangements.
It says it has no plans to use its funds to restart mortgage lending.
Andrew Turner, executive chair-man of Central Trust, says: “We are delighted to have secured this new funding facility from RBS and NAB.
“It is a testament of our business model, our reputation and resilience in these tough economic times. It is also an endorsement of the strength of proposition that we create for our customers and their requirements.”
Turner adds that the fresh funding puts the firm in a strong position for 2010 and will allow it to invest further in the development of a wider product range and take advantage of improvements in the economy as they come through later in the year.
Greg Elswood, director of spec-ialised group assets at NAB, says: “Central Trust has been a good customer of NAB for a number of years, and we are delighted to continue our support for the company.”
He adds: “Turner and his team have managed difficult markets well and the new credit facility will help to support Central Trust’s growth plans and the next stage of the company’s development.”
Kieran McSweeney, director of structured finance and corporate and institutional banking at RBS, says: “We have provided funding to support its strategy for growth and help expand the product proposition it has in mind for its customers.”
