Asset-based lender Davenham Group has continued to expand its territory within the UK with the purchase of a commercial leasing specialist from North Yorkshire. Manchester-based Davenham, which services small businesses, acquired Manor Credit for £25.1 million.

Asset-based lender Davenham Group has continued to expand its territory within the UK with the purchase of a commercial leasing specialist from North Yorkshire. Manchester-based Davenham, which services small businesses, acquired Manor Credit for £25.1 million.

The deal, which was paid in cash funded through debt, expands Davenham’s loan portfolio and introduces new customers to its business. Manor Credit was sold by London Scottish Bank as part of its plan to develop its Robinson Way and London Scottish Mortgages divisions.

Davenham provides loans of up to £4.5 million to small businesses in the UK. Its asset-based lending finances plant, machinery and equipment acquisitions as well as funding stock, debtors and letters of credit.

The business was founded in 1991 and has operations in Leeds, Birmingham, Liverpool, London and Newcastle.

Manor Credit is a commercial leasing and hire purchase business which specialises in providing asset-backed finance for small businesses to buy commercial vehicles and construction equipment.

The company, which is based near Huddersfield, had an unaudited profit before tax of £664,000 from a £2.9 million turnover in the year to November 2006.