H&T Group, the UK’s largest pawnbroker, has received additional support to fund the growth of the business from Allica Bank in the form of a £10m funding facility.

The additional funding will support the growth in the pledge book and investment in the store portfolio.

H&T Group, which is also a retailer of new and pre-owned jewellery and watches, confirmed the facility comprises a term loan with a maturity which coincides with, and which has the option to extend maturity in line with, the group’s existing funding facilities provided by Lloyds Bank.

Interest will be charged at a rate of 4% above the Bank of England’s base rate, which currently sits at 5.25%. Covenants are aligned with those of the existing funding facilities with Lloyds Bank, with the addition of a new covenant requiring asset cover – pledge book plus inventory – of no less than three times net debt.

Allica Bank is a specialist bank that provides lending, savings and current accounts to SME businesses, delivered through a combination of proprietary technology and human relationships.

“We are very pleased to have the support of Allica Bank as an additional funding partne,” said chief financial officer of H&T, Diane Giddy.

“We have continued to see good growth in the pledge book in the second half of the financial year, with sustained demand for our products and services, and the investment we are making in our store estate is expected to underpin future growth.

“The new facility, alongside our existing long-standing support from Lloyds, will enable us to grow our pledge book further in FY24.”

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