Fleet News

Cinch receives £50m finance boost to boost its used car stock

Fleet news logo

BCA’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.”

Click here for remarketing best practice and procurement insight

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Related content

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee