Amigo Loans’ millionaire founder James Benamor will be even wealthier after the company lists on the main market.
Already known as the richest man in Dorset, Benamor's vehicle Richmond (plus some directors and staff) are selling around 25% of Amigo Holdings Limited, which has grown into the UK’s largest guaranteed loans group since he set it up aged 21 in 2005.
Poor credit histories and guarantees
Aimed at people with poor credit histories, Amigo provides guaranteed loans between £500-£10,000 at 49.9% interest (APR).
Repayable over 12-60 months, they are guaranteed by family members or friends.
Amigo claims an 88% market share in its niche and was the first dedicated guarantor lender to obtain FCA authorisation.
Loans issued have risen to £470mln per year while Amigo made a profit of £72mln in the year to March.
Impairment charges were 21.3% though Amigo said the bad debt charge was inflated by a series of pilot programmes using new underwriting criteria.
No new money is being raised for the company through the listing, which will be on the Premium section of the London Stock Exchange.