Rival provider will manage run-off as premium finance firm goes into administration.
Close Premium Finance (CPF) is set to take over the client book of rival Aascent Finance which went into administration this week.
Aascent was forced to cease trading when its line of funding dried up, according to an announcement earlier this week by the lender’s administrator, Grant Thornton.
CPF said the Aascent brand would vanish within the next 12 months as clients were persuaded to transfer their business.
CPF chief executive Bob Golden said: “Once a premium lender goes into administration, it can no longer provide loans to clients, and it has to run off.
“Brokers had a pipeline of business with Aascent and within 24 hours of the administration announcement, we called 70 brokers and reassured them that all pipeline business will be honoured.
“We will manage the run-off over the next 12 months.”
Golden said that some premium lenders had been hard hit by the economic downturn, because of tightening credit markets and higher lending rates.
Grant Thornton issued a statement reassuring Aascent’s clients that they would still be able to secure premium finance from CPF.
The company’s joint administrators, Malcolm Shierson and Daniel Smith, said: “Close Premium Finance a division of Close Brothers, is assisting the administrators with the management of Aascent’s current loans and all brokers will be contacted by the administrators and CPF shortly.”
Grant Thornton refused to comment on the cause of Aascent’s administration.
Aascent, which employs 15 staff in its London office, was not available for comment.
Close Premium Finance (CPF) is set to take over the client book of rival Aascent Finance which went into administration this week.
Aascent was forced to cease trading when its line of funding dried up, according to an announcement earlier this week by the lender’s administrator, Grant Thornton.
CPF said the Aascent brand would vanish within the next 12 months as clients were persuaded to transfer their business.
CPF chief executive Bob Golden said: “Once a premium lender goes into administration, it can no longer provide loans to clients, and it has to run off.
“Brokers had a pipeline of business with Aascent and within 24 hours of the administration announcement, we called 70 brokers and reassured them that all pipeline business will be honoured.
“We will manage the run-off over the next 12 months.”
Golden said that some premium lenders had been hard hit by the economic downturn, because of tightening credit markets and higher lending rates.
Grant Thornton issued a statement reassuring Aascent’s clients that they would still be able to secure premium finance from CPF.
The company’s joint administrators, Malcolm Shierson and Daniel Smith, said: “Close Premium Finance a division of Close Brothers, is assisting the administrators with the management of Aascent’s current loans and all brokers will be contacted by the administrators and CPF shortly.”
Grant Thornton refused to comment on the cause of Aascent’s administration.
Aascent, which employs 15 staff in its London office, was not available for comment.
