Black Horse

What Black Horse does

Black Horse is a UK motor finance provider, operating as a wholly-owned subsidiary of Lloyds Banking Group, one of the UK's largest retail banks. Founded in 2001 and headquartered in Cardiff (registered office in London), Black Horse finances vehicle purchases for UK residents aged 18 and over through authorized car dealerships and franchise networks. The company serves two linked customer bases: dealers that need embedded point-of-sale finance capability, and UK consumers that need vehicle financing at the dealership counter.

The company's core product is an API-first motor finance platform that integrates directly with dealer management systems and digital retailing solutions, covering quoting, proposing, signing, and funding in an end-to-end workflow. Approximately 65% of the business is now API-driven. A consumer-facing 'Get a Rate' pre-eligibility tool returns a personalized APR based on credit scores, enabling customers to check finance options before committing to a vehicle purchase. The technology positioning is centered on reducing re-keying errors, improving invoice accuracy, and supporting FCA compliance at the dealer point of sale.

Black Horse generates revenue through interest charges and transaction fees on motor finance loans originated via its dealer network. Its go-to-market is a B2B2C model: the company sells integration and finance capacity to dealerships, who in turn offer Black Horse financing to vehicle buyers. The business operates exclusively in the United Kingdom and currently faces material regulatory headwinds from the FCA motor finance mis-selling redress scheme and an active £66 million court claim, against which Lloyds Banking Group has booked £2 billion in provisions.

Name

Black Horse

Legal name

Black Horse Limited

Website

https://blackhorse.co.uk

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

251–500 employees

Short description

Black Horse is a UK motor finance provider and wholly-owned subsidiary of Lloyds Banking Group, offering vehicle financing to consumers through authorized dealerships via an API-integrated dealer management platform and pre-eligibility tools.

Ownership category

akta.pro rank

Headquarters

HQ city

Cardiff

HQ country

United Kingdom

HQ region

Europe

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Technology or R&D, Others

Revenue model

1. Motor Finance Lending: Black Horse provides motor finance loans to consumers purchasing vehicles through dealerships. Revenue is generated through interest charges and financing fees on car loans. The company is part of Lloyds Banking Group and faces provisions related to mis-sold car loans and compensation schemes.

Go-to-market motion1 record

Distribution channels1 record

Core offering

Black Horse provides motor finance lending to UK consumers purchasing vehicles through authorized car dealerships. The company delivers its finance products via an API-first platform that integrates directly with dealer management systems and digital retailing solutions, with approximately 65% of business now API-driven. Black Horse also offers a pre-eligibility 'Get a Rate' tool that returns personalized APR based on credit scores.

Product overview

Black Horse is a motor finance brand operating as part of Lloyds Banking Group, offering motor finance products to UK residents. The company provides a unified motor finance offering built around API technology, with approximately 65% of business now API-driven. The core product portfolio includes the Black Horse Motor Finance API (enabling quoting, proposing, sign and fund services) and the 'Get a Rate' pre-eligibility tool that returns personalized APR based on credit scores. These products integrate with dealer management systems and digital retailing solutions to create seamless end-to-end processes.

Differentiator

Problem solved

Functional benefit

Products and services

• Black Horse Motor Finance

Quantifiable outcome

• 65% of business is API-driven, reducing manual errors and processing time

Named customers2 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature2 records

Scale indicators4 records

Recent moves5 records

Expansion highlights3 records

Broad incumbents

• BMW Financial Services (GB): UK captive finance arm of BMW Group offering retail and dealer finance for BMW and MINI. Comparable as a UK dealer-embedded motor finance provider, with manufacturer-backed funding advantages distinct from Black Horse's third-party model.
• Stellantis Financial Services UK: UK captive finance arm for Stellantis brands (Peugeot, Vauxhall, Citroën, etc.), offering dealer-embedded retail finance. Comparable as a UK dealer-distributed motor finance peer competing for similar franchise relationships.
• Volkswagen Financial Services UK: OEM-captive finance provider for Volkswagen Group brands in the UK, providing dealer-embedded PCP and hire purchase products. Comparable on dealer-anchored UK motor finance distribution but benefits from manufacturer rate subsidy that Black Horse does not.
• Santander Consumer Finance UK: UK consumer and motor finance arm of Santander, offering dealer-arranged vehicle finance alongside broader consumer credit products. Comparable on the motor finance product set and FCA-regulated UK footprint, with a wider product portfolio than Black Horse.
• Hyundai Capital UK: UK subsidiary of Hyundai Capital providing dealer-anchored finance for Hyundai and Kia brands. Comparable as a point-of-sale UK motor finance competitor, though typically subsidised by manufacturer offers.

Emerging players

• Vesuto: UK automotive fintech providing finance and digital retailing tooling for dealer groups. Comparable to Black Horse's API-driven dealer integration thesis, though more of a technology-enabled intermediary than a balance-sheet lender.
• Octopus Electric Vehicles (finance arm): UK provider of EV salary sacrifice and finance products through employer and dealer channels. Compares to Black Horse on UK consumer vehicle finance but focuses specifically on the EV/salary-sacrifice segment, intersecting rather than fully overlapping.

Direct peers

• MotoNovo Finance: UK-focused motor finance provider serving both dealers and consumers through point-of-sale lending. Directly comparable to Black Horse in target market (UK car buyers), dealer-anchored distribution, and non-captive finance positioning.
• Paragon Bank: UK specialist lender offering motor finance alongside broader asset-based lending portfolios. Comparable as a non-deposit-taking UK credit intermediary active in vehicle finance, addressing similar FCA-regulated consumer credit exposures.
• Close Brothers Motor Finance: UK motor finance division of Close Brothers Group, providing point-of-sale finance through dealer and broker channels. Comparable on product (hire purchase/PCP), dealer distribution model, and regulatory exposure to UK FCA redress.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/black-horse-finance

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Black Horse