Shawbrook to pause new applications for asset finance facilities

Shawbrook has announced a strategic pause in new applications for their asset finance facilities, effective from January 31, 2025.

This decision encompasses hire purchase, finance lease, and sale and leaseback products, affecting both flow and mid-ticket offerings.

Despite this pause, the bank remains committed to its broader SME lending portfolio and will continue accepting applications for Unsecured CapEx Term Loans and Professions Finance.

Existing asset finance agreements and applications submitted on or before the January deadline will continue to be processed as usual. Additionally, current clients with live asset finance facilities will see no changes, with Shawbrook continuing to service these agreements in line with their terms.

A spokesperson for Shawbrook commented: “Shawbrook is constantly evolving to meet the changing needs of our SME customers. As part of this, we have made the strategic decision to pause new applications for asset finance. This allows us to focus on the development and delivery of new finance products and services, including the increasingly popular capital expenditure loans, which offer businesses greater flexibility to invest in growth and innovation.

“We’re also focused on our commitment to support established businesses to unlock the value in the existing assets to fuel their growth through our asset-based lending proposition. This shift reflects our mission to provide finance to UK businesses who value the premium experience, flexibility and certainty we provide.”

The likely duration of the pause in trading is currently unclear.

Shawbrook was reportedly up for sale in 2024 but was later withdrawn from the market. In September 2024, the company acquired JBR Capital, a provider of luxury auto financing. The lender is now said to be exploring the possibility of an IPO on the London Stock Exchange. While Shawbrook had previously contemplated going public, those plans were shelved, citing volatile market conditions. However, financial reports suggest that a listing could take place this year.