Back in 2017, Hoist Finance bought a complex portfolio of loans. When looking for a partner to undertake the servicing of the loans, they chose to retain the incumbent servicer – Target.
The servicing partnership was a success, which led to Target’s sister company Elderbridge being chosen to take on the Lender of Record service for the portfolio.
The portfolio included a range of loan types – unregulated, MCOB and CCA. The complexity didn’t stop there. The interest rates across the portfolio ranged from LIBOR to base rate and variable. This complexity would be difficult for single lender to handle. However, Elderbridge’s comprehensive FCA permissions, as well as its experience with different loan types, and its sophisticated technology means that such complexity is easily handled.
The 1,800 loans, amounting to over £30m, were successfully migrated to the one provider – Target undertaking the servicing, and Elderbridge undertaking the regulatory permissions. It’s this “one stop shop” that has supported Hoist Finance’s growth and delivered the required returns.
Hoist Finance chose to outsource the FCA regulation and administration to Elderbridge, utilising Elderbridge’s FCA permissions. By doing so, they were able to avoid the regulatory burden, hand off the FCA administration, and take advantage of Elderbridge’s governance, policies and procedures.
The skilled team at Elderbridge has significant experience in supporting vulnerable customers and providing responsible lending. By ensuring good customer outcomes and by Treating Customers Fairly, Hoist Finance are able to divert their focus to more value-added services and continue to grow their business. As Hoist Finance grows, the partnership with Elderbridge is enabling them to scale up and adapt, as well as secure the returns on their investment quickly.
Aleksandra Banaszkiewicz from Hoist Finance said of the partnership, “We’ve been really pleased with how Target’s servicing, coupled with the successful Lender of Record service from Elderbridge have supported our growth. We haven’t had to worry about the regulations as Elderbridge has confidently taken on that burden. As portfolio trades pick up again as we ease out of the Covid-19 pandemic, I look forward to further working with Elderbridge as we add more portfolios to the partnership.”
Jon Bartlett, Head of Operations and Customer Excellence at Elderbridge added, “It can be challenging for lenders to take on new portfolios, especially when there are complexities. Having such a close relationship with the servicing company (our sister company, Target) helps to close the loop on the whole customer journey. The great thing about outsourcing the Lender of Record to Elderbridge is that Hoist Finance can focus on buying new portfolios to further grow their business.”