Catfoss grows sustainably with support from SFS block discounting

Asset finance companies are increasingly looking for online platforms from their funders. These platforms allow ‘blocks’ (one or several deals) to be placed and concluded quickly. Increasingly, this level of service is becoming a hallmark of excellence sought out by SMEs that require funding for their equipment and technology needs.

Founded in 1999, Catfoss Finance provides business asset finance for the SME marketplace in the UK. Catfoss covers a spectrum of corporate asset types for a diverse range of customers, with a total book that has now passed £70 million. Among its preferred assets are light and heavy commercial vehicles, trailers, plant and machinery, agricultural, forestry and industrial machinery.

Catfoss Finance had a large portfolio of funders, each of whom used different systems with varying levels of speed. These systems were often email-based, with no online facility. Since Catfoss frequently requires access to funds at short notice, the advent of an online platform from Siemens Financial Services was an attractive enhancement to the company’s service. Speeding up response times and fuelling growth, Catfoss decided to enhance back-office facilities with online access and auto-decisioning.

Matt Tate explains how the partnership with Siemens Financial Services came about. “We’ve dealt with Siemens Financial Services (SFS) for many years. The latest development in our work together has been the capabilities of the SFS block discounting portal.

“The thing about the SFS block facility and portal is that it’s so easy to use. When you send block files in a traditional discounting relationship, they’re somewhat fiddly to send manually, having to split the paperwork over several emails. The new SFS system now means we can drag and drop and it goes through. And the payout is very quick.”

Many funders have yet to take the leap and develop an online platform, which automatically makes SFS a preferred partner. As Matt says, “Developing a block portal requires investment, and there must be a commercial decision that the banks make about their investment appetite, based on how important block discounting is to their overall business. Not everyone will invest in good online systems – either the generalists or the smaller funders.

“Only two or three funders have an online facility for sending blocks in. We like to spread blocks among our funders, of course. But ease of processing inevitably makes some difference to where we place each one.

“In short, the SFS block discounting portal is an excellent business and growth tool for us. They’ve taken the trouble to develop a really good system and we’re leveraging that for our own, and our clients’, benefit.”