Carmoola, a London-based car finance firm, has increased its debt with a new £100m loan from NatWest, aiming for significant growth in loan originations.
- Carmoola refinanced £31m in loans last year and holds a senior revolving credit facility of £50m, extendable by £25m.
- The company plans to leverage the financing to expand its customer base, projecting billions in loan originations over five years.
- Despite a revenue surge to £2.7m in 2023, Carmoola’s losses have doubled to £7.4m, with debt financing costs quadrupling to £2m.
- NatWest expresses continued confidence in Carmoola, highlighting the firm’s innovation and customer-focused approach.
Carmoola, a London-based fintech firm specialising in car finance, has augmented its debt strategy by securing a new £100m loan from the major financial institution, NatWest. The additional funding is set against a backdrop of previously refinanced loans totalling £31m and existing credit facilities amounting to £50m, with possible extensions. The firm has disclosed these financial details in recently filed company accounts, though specifics about the new term loan remain undisclosed by the company.
With this injection of capital, Carmoola intends to significantly scale its operations, targeting the delivery of billions of pounds in loan originations within the next five years. This move reflects the firm’s strategic direction to strengthen and expand its customer base amid increasing demand for straightforward car financing solutions. The founder and CEO, Aidan Rushby, emphasised their dedication to enhancing customer experiences by offering ‘more amazing rates’ and maintaining transparency and cost-effectiveness in financing options.
Reflecting on its financial performance, Carmoola has demonstrated growth in revenues, recording a notable surge to £2.7m in 2023. However, this growth comes with increased financial challenges as the firm’s losses have simultaneously doubled to £7.4m, and the costs associated with financing debt have quadrupled, reaching £2m. These figures highlight the financial pressures accompanying its ambitious growth agenda.
Despite these challenges, the partnership with NatWest represents a strong vote of confidence in Carmoola’s business model and its innovative approach within the car finance sector. George Ross, NatWest’s managing director and head of speciality finance, voiced the bank’s support for Carmoola, acknowledging its efforts in driving sector innovation and its commitment to the financial well-being of UK car buyers.
Carmoola’s new financing underscores both the growth potential and financial challenges typical of an expanding fintech entity within the competitive car finance market.
