Vehicle hire firm Hexagon Leasing is to roll out a new vehicle sales division following a £600,000 purchase funding agreement from Bibby Financial Services.

Hexagon Leasing operates an 800-strong fleet of HGVs, vans and cars, offering vehicles on a contract hire or rental basis to businesses across the UK. Using a £600,000 purchase funding facility – structured by the Bibby Financial Services West Midlands team – the business is set to launch a new division offering vehicle sales.

Vehicles will be purchased by Derby-based Hexagon Leasing, refurbished and sold on to existing customers, dealerships and the private market. BFS has agreed to advance an amount for the business to purchase a fleet of vehicles, without stipulating an invoice finance facility to cover the sale of vehicles to Hexagon’s customers.

Ben Smith, head of Bibby Financial Services’ West Midlands Business Centre claimed the deal demonstrated his team’s “agility and innovation”. He said: “Our team has worked closely with the team at Hexagon to understand their ambitions and appetite for growth. It would be difficult to imagine another provider who could offer similar levels of service and flexibility.

“This facility is solely based on the balance sheet of the business and our confidence in the team, and it demonstrates our expertise when it comes to managing risk effectively to support business growth.”

Throughout the rest of Q1, Hexagon Leasing plans to refurbish and sell in excess of 140 vehicles, while maintaining its contract hire stock levels. The new venture is projected to increase the company’s annual profits by more than 30% to £750,000 in 2015.

Smith added: “While Bibby Financial Services is traditionally known as an invoice finance provider, we structure a range of transactions for stock purchase, mergers and acquisitions, turnaround and refinancing, so we can help businesses, whatever their requirements.”