brokers /
23rd October 2020
Continuity of funding - Benefiting our brokers and borrowers
Raising funding at favourable terms is key for Premium Credit so you can present your customers with attractive instalment payment options. How do we do it? Premium Credit is not a bank, which means we are not allowed to fund ourselves through customer deposits. Instead, since 2012 we raise a large portion of our funding through a technique called securitisation. This consists in pooling together a number of customer loans into bonds, which are then traded on the stock exchange. These bonds are then bought by pension funds, insurance companies and banks as an investment.