Hybrid car finance specialist Upfront Car Finance secured £1,500,000 from UK Bond Network investors across three £500,000 tranches.
Each tranche consisted of a £500,000 bond, with a £450,000 Series A and a £50,000 Series B, paying 9% and 20% gross per annum respectively for the first two tranches and 11% and 17.5% for the third. The company sought the finance to continue acquiring new Toyota Prius vehicles, enabling them to scale more quickly.
Upfront offers a driver-centric, flexiable and secured car finacne product for hybrid vehicles, using Uber earnings data to form a lending decision. The Upfront team is highly experienced in lending, having built and managed loan books of over £500m with capital loss below 0.1%.
UK Bond Network is providing a novel finance solution at an important time for our business. With a driver pipeline greater than cars available, the funding will help us to deploy more vehicles and scale more quickly.JONATHAN SAMUELS, FOUNDER & CHIEF EXECUTIVE, UPFRONT
Key auction statistics & Headline terms
Average bid size
9% & 20%
Interest rate (gross per annum)
Tranches 1 & 2
Series A: 9% gross per annum
Series B: 20% gross per annum
Series A: 11% gross per annum
Series B: 17.5% gross per annum
|Repayment||Half monthly amortisation, half bullet at maturity|
|Security||Unsecured, but with protection features and a negative pledge|
Chris Maule, CEO and founder of UK Bond Network, thoughts on Upfront:
"Upfront Car Finance is the sort of business we're increasingly used to helping, a highly innovative, high potential SME in a growth sector, led by able and well-qualified people such as Jonathan and his team. We're delighted to be assisting Upfront in achieving its growth goals, whilst providing investors with some much-needed yield in the current meagre interest rate evironment"