By Julian Whittle

Last updated at 15:49, Friday, 15 February 2013

A vehicle finance firm that defied the odds by growing through the credit crunch has just marked its 15th anniversary.

David Carruthers

H&H Borderway Finance began life with five staff in January 1998 at Rosehill, Carlisle.

Since then it has helped more than 24,000 customers – individuals and businesses – by advancing lending totalling £165m. These days it has 11 employees and lends around £20m at any one time.

Most of its business is providing finance for car purchases, although it also lends on light commercial vehicles.

Clients are spread across Cumbria, south west Scotland and north Lancashire.

Managing director David Carruthers has been at the helm throughout.

He said: “The fundamental difference between us and our competitors is that we don’t credit score.

“We look at each case on its merits. It’s a more flexible approach.

“There are people who through no fault of their own, perhaps because of redundancy, have a blip that might affect their credit score. That blip doesn’t affect their ability to make repayments.

“Many lenders would rule them out. We get all the financial information and make a proper judgement.”

Much of the lending to individuals, as opposed to businesses, comes through car dealers.

But there is nothing to stop the public dealing directly.

The company has always been part of the H&H auction-mart group although in the early years it traded without the H&H moniker as plain Borderway Finance.

Its business model is simple. It borrows on the strength of H&H Group’s assets then lends the money at competitive commercial rates, making a profit on the difference.

Group chief executive Brian Richardson said: “When the credit crunch hit [in late 2007] we were still able to borrow because of the track record of H&H and our significant asset base. It is the strength of the group that allowed us to continue.”

Over the following 12 months H&H Borderway Finance actually grew by 15 per cent because many of its competitors were forced to curtail lending as their supply of finance dried up.

When the business started, there were at least 10 vehicle-finance companies in Cumbria. Mr Carruthers had worked for two of them – Lloyds Bowmaker and General Guarantee. Now it is the only one with an office in the county.

Despite the flexible approach to lending, bad debt levels are very low. The main challenge these days is to persuade potential customers to purchase vehicles and take on debt.

Mr Carruthers said: “There is a reluctance to spend money with the way the economy has been.

“We are keen to let local businesses know that we have funding available.

“We can provide money to purchase vehicles that can release working capital that can be used to earn money.”

First published at 15:47, Friday, 15 February 2013
Published by http://www.cumberlandnews.co.uk