New Used Car Seller Cinch Due To Expand Thanks To £50 Million Boost
Friday, 27. November 2020
British Car Auction’s online car retailing platform cinch has secured a £50m finance facility from HSBC and Natwest to boost its inventory.
Cinch launched in July 2019 as a rival to Auto Trader, offering car retailers an online marketing platform on which to promote their stock for sale. Last month (October 2020), it announced that it would begin selling cars, putting it in direct competition with its clients; such as online retailer Cazoo.
It allows consumes to find, buy, finance and part exchange their car online, with a 14-day money back guarantee.
As a marketplace, dealers, car manufacturers and leasing companies can also offer their vehicles directly to consumers through the cinch platform.
Geoffrey Head, cinch’s finance director, said: “This finance facility from HSBC UK and NatWest comes at a pivotal time for our business and will allow us to further develop our end-to-end digital offering for consumers.
The pandemic has drastically changed consumer behaviours and the ability to sell vehicles online will continue to be critical across the automotive sector. We are committed to developing this offering for both our consumers and partners across the industry.”
The new funding package, which includes £35m of funding from HSBC UK and £15m from NatWest, will be used to bolster cinch’s own inventory programme with around 5,000 new vehicles. Cinch says, along with its dealer partner stock, it will be among the UK’s largest direct-to-consumer platforms.
Gerard Haughey, head of global trade and receivables finance, Large Corporate, at HSBC UK, said: “Cinch’s fully digital offering is playing a central role in transforming the used car market for the digital age.
We are delighted to be able to support the business with a fairly unique inventory only asset-based lending facility as the team at cinch build this innovative service for the benefit of consumers and all players in the industry.”
Martin Noakes, head of asset based lending at NatWest, added: “This innovative financing package will help cinch achieve its ambition of providing cars to consumers in a convenient way through its online platform.
Our support will enable cinch to futureproof its business and keep pace with changing consumer behaviour in their industry.” By Graham Hill thanks to Fleet News
