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Amigo Loans goes up for sale

Amigo Loans has put itself up for sale, BBC News has reported.

Amigo lends to those with a poor credit rating, but is also known for its guarantor loan offering.

The company reportedly controls around 80% of the UK market but has been under regulator scrutiny in recent times.

The FCA issued warnings in 2019 towards the gurantor loan industry by outlining that its risks must be made clearer.

The main complaints have been from borrowers who claim insufficient checks were made to ensure that repayments could be met.

The BBC reports that in an update to the stock market, Amigo Loans stated that it “continued to face a challenging operating environment”.

No approaches to buy the business have been made, but the business is valued at around £323m.

Matt Tristram, co-founder at Loans Warehouse, works closely with Amigo and says it is an “amazing business”.

He added: “We have been partners with Amigo Loans for nearly a decade, and it is one of the businesses we most respect.

“During that time there have been changes to their structure and a previous sale, if it was not in the press our customers and ourselves would never have known.

“Through everything they have continued to be the biggest brand in the guarantor loans market by a country mile, and as a partner it has always been easy to see why.

“Whoever purchases Amigo Loans is buying an amazing business.”

This sale comes after its chief executive Hamish Paton stepped down after five months in December 2019.

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