Jaguar Land Rover receives innovative loan package

Jaguar Land Rover is expected to announce a unique five-year loan worth £170m, reports the Financial Times.

The money comes in the form of a new £170m working capital facility from GE Capital, the financing arm of General Electric in the US, allowing JLR to to make money from finished vehicles before they reach showrooms.

The asset-backed distribution finance facility will be drawn down by JLR when vehicles are completed on its three production lines.

This will help to shorten the 30- to 40- day gap between producing cars and delivering them to dealerships in 90 countries.

"Having identified a large group of assets that had been underutilised we looked at how working capital can be freed up from them and we found a solution," said Rich Green, chief executive officer of GE Capital's distribution finance business.

"We are talking to several other European car makers about a similar facility, but as far as we know this is the first of its kind."

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