Supply chain finance and e-invoicing firm Tungsten Corporation has finally been given approval by UK regulators for the sale of its bank, almost a year after agreeing to sell it for £30m to interests controlled by steel magnate Sanjeev Gupta.
Tungsten Bank was established as recently as 2014 to provide invoice finance to SMEs but it has failed to meet expectations. Rather than self-funding, Tungsten will now work with its non-bank partner, Insight Investment, owned by BNY Mellon, which will fund Tungsten’s invoice finance clients’ early-payment receivables.
“Owning a bank proved to be unnecessary to the achievement of our ambitions, and the costs of its operation and regulatory burden impeded our progress,” chairman Nick Parker said in the company’s most recent annual report. The sale is expected to complete in December.