1st Stop Finance sheds 50 staff

1st Stop Finance has made 50 of its 116 strong workforce redundant, following Cattle\'s decision to cut its lending.

The decision came after Cattles, the parent of Welcome Finance failed to secure its banking licence from the Financial Services Authority, resulting in it cutting down lending significantly.

Mike Grey, joint managing director of 1st Stop Finance says it had geared up for large amounts of business through Welcome.

He says: “We were one of four packagers that had an agency with Welcome, but just like them we have ran out of bullets to fire.”

Grey says he is confident Welcome will return to the market in the second part of next year if the government decides to help it out.

Cattles recently asked the government to consider it for its loan guarantee scheme. If accepted it would boost the lender’s chances of being able to renegotiate its loans, which combined total £635m.

But Grey says he has been impressed by the loyalty of his staff who recently voted to take a 30% pay cut. Grey says his staff have been fantastic and there is the possibility that some may return if the market comes back.