1pm PLC (LON:OPM) has been approved for accreditation as a lending partner under the Government's Coronavirus Business Interruption Loan Scheme (CBILS).
Becoming an accredited lender will enable the provider of finance facilities to small and medium-sized businesses to expand its lending activities.
1pm said it will be able to finance leases and loans to business customers across the UK that have been affected by the COVID-19 pandemic, all the while benefiting from a government-backed guarantee for the loan repayments due from the borrower.
In addition to the government-backed guarantee, the Government will make a “business interruption payment” to cover the first 12 months of interest payments due and charges levied.
It is anticipated that following a short period of preparation to be undertaken in conjunction with British Business Bank, including staff training and entry into underlying agreements, Onepm will be in a position to commence lending under CBILS this month,
As for current trading, in common with most businesses operating in the non-bank, specialist lending sector, 1pm has seen a number of existing borrowers requesting payment delays, holidays, or similar forbearance as they adjust to substantial losses of revenue.
The group has thus far received forbearance requests from about a quarter of its borrowers, representing roughly 15% of the group's portfolio by value.
Shares in 1pm were up 7.9% at 17p in early deals.