Property finance lender, Market Financial Solutions, has made an application to enter into administration which it says will protect employees, investors and stakeholders while it works through an "unexpected banking-related issue".
The decision follows a temporary restriction on access to the lender’s banking facilities, which it claims arose "from a procedural matter with its primary banking provider".
The board agreed that placing the company into administration was "the most responsible way to safeguard value and provide stability during this period and allow operations to continue under the supervision of the court".
Founded in 2006, Market Financial Solutions has managed more than £1.2 billion in cumulative lending, with the loan book reaching approximately £2.4 billion at its peak.
In a statement, Market Financial Solutions said: "Administration provides a structured and regulated environment in which the business and its assets can be protected, loan management, collections and servicing can be maintained while independent officers oversee the process and engage with stakeholders. The immediate focus is on stability, transparency and the careful preservation of value."
The firm says it remains hopeful that, subject to progress during the administration, "there may be an opportunity to stabilise the business and explore options for its future".
Paresh Raja, founder of Market Financial Solutions, said: “This is an extremely difficult moment for everyone connected with Market Financial Solutions. As a family-founded business that has been built over nearly 20 years, this is not a decision that has been taken lightly.
“The current situation does not reflect a failure of the underlying business or the quality of our assets, but rather a technical and procedural impasse that has temporarily limited our access to everyday banking facilities.
“My priority is, and always has been, the people behind this business – our staff, our investors and our creditors. Entering administration allows the company to be protected while we work openly and cooperatively with the joint administrators to find a way forward. I remain fully committed to preserving value and doing everything possible to support a positive outcome for all stakeholders.”
