Multi-distributor Thinc Group has revealed that Bank of Scotland is the institution providing the backing for its major expansion drive, setting up a commercial financing facility for the firm to draw down from.
As revealed in Money Marketing earlier this month, Thinc has arranged significant institutional backing to finance its acquisition spree as it aims to reach 220 advisers by the end of the year.
The financing, thought to be for an initial amount of £6m, has been set up as a drawdown account although it is believed that Thinc could request to extend that amount if necessary.
The deal does not involve the HBOS subsidiary taking a stake in Thinc although a Bank of Scotland spokesman says such arrangements have been used in the past to take a stake.
Thinc currently has 130 advisers across its four groups. They are an IFA, a multibrand distributor, which will become its multi-tie operation, a mortgage broker and a commercial finance operation.
Thinc chief executive Gregg Taylor says: “We have our infrastructure in place and the ongoing Bank of Scotland facility gives us the financial backing to make serious acquisitions and be a market consolidator.”
Bank of Scotland cashflow finance head of sales Peter Curran says: “Thinc's breadth of expertise across the full gamut of specialist advice can only be good for the sector and we are delighted to be involved with them.”