COMMERCIAL finance provider IGF Group has doubled the amount of cash it has to invest in Scottish businesses after launching a base in Glasgow in the summer.
The firm, which specialises in making asset-based loans to small and medium sized enterprises, initially set aside £5 million to lend in the Scottish market.
Having seen a high level of demand since its June launch, however, the firm has doubled that sum to £10m.
The company’s Scottish director Alan Anderson said: “Since we opened in June we’ve seen a large uptake and so we’ve diverted funds to make sure we can meet the demands of Scottish businesses.
“We’re ahead of where we thought we would be so we’ve diverted an additional £5m from the wider business.”
IGF Group, which was founded in 1997 and has a network of offices throughout England and Wales, uses cash raised from its private equity backer Spring Ventures as well as bank finance to make loans of varying sizes to SMEs.
The first £5m it allocated to its Scottish arm has been lent out to 10 clients in sums varying from £100,000 for an invoice finance facility to £2m for an asset-based lending facility.
Mr Anderson said the additional £5m would be lent specifically to businesses seeking to do a management buyout, adding that the entire sum could go to just one firm or be split among several, depending on what is required.
IGF Group will lend to businesses in any sectors although so far it has lent a lot to recruitment and facilities management, procurement, engineering and construction businesses.
It provides rolling or term loans, which are secured against assets such as stock, machinery or property.
“There are small businesses all across Scotland looking for finance, many of which have untapped wealth in the assets of their companies,” Mr Anderson said.
“This fund, as well as our other asset-based lending options, can provide businesses with a financing solution that mainstream lenders cannot offer.”
Mr Anderson joined IGF Group’s Scottish arm when it launched, having previously worked at Bibby Financial Services, GE Capital and Aldermore Invoice Finance.
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