Carlsberg loan deal

Carlsberg has become the first major brewer to outsource its business-loans division to a specialist credit management company, Avance Group, as it bids to build its portfolio by 15% this year.

Avance will manage customer-facing aspects of the service, credit-scoring applicants, opening accounts

on behalf of Carlsberg and overseeing customer relationships "from cradle to grave".

Avance managing director Jarlath McHale said that brewers' loans could have up to six different repayment terms, compared to one or two for the new Carlsberg loans.

Terms of the new loans are now more standardised, he said. One interest rate is applied to the loan and repayments are always monthly.

McHale added: "There are many different loans in the marketplace. We've simplified the product offer, speeded up the process and made it more user-friendly."​

McHale added: "The job of the [brewery] salesmen in the field is to sell beer. They are not credit managers or bankers, whereas we have a team of dedicated commercial managers in the field with a background in the brewing and financial sectors."​

Carlsberg financial controller Mark Owen said: "The outsource has been accompanied by a review of processes designed to enhance customer-service speed significantly.​

"We recognise funding provision to our trading partners as a key part of our product, adding value to customers' businesses, facilitating growth and building lasting relationships."

Avance Group was formed in 2006 from a £29m management buy-out backed by Sovereign Capital Partners.