The UK lender says there is a gap in the SME market for commercial, asset-backed lending.

Arbuthnot Latham, the UK private bank, is launching a commercial asset-based lending division, targeting small- and medium-sized firms.

Leading the group is Tim Hawkins, who joins from Shawbrook Bank.

The division offers services including confidential invoice discounting as the core facility, supported by stock, plant and machinery, property, and cash flow lending, to generate optimal headroom for businesses, Arbuthnot Latham said in a statement.

At Shawbrook Bank, Hawkins was formerly the managing director of the business credit division. He has more than 30 years of experience in the field.

“The launch of the new division further strengthens our commercial banking offering, as we continue to drive our growth strategy,” Ian Henderson, chief executive at Arbuthot Latham, said. He said the offering fills a gap in the SME and mid-cap lending market.