The Funding Corporation - the finance firm supported by Midland millionaire Bob Edmiston - has more than trebled its profits to £5 million.
The firm, which is also funded by Barclays, enjoyed a 146.7 per cent increase in turnover as its loan book increased to £286.5 million.
TFC, chaired by Mr Edmiston, made an operating profit of £5 million to December 2004 - up from £1.6 million in 2003 - on sales of £118.7 million, up from £48.1 million. Its loan book (net capital outstanding) was up 81.6 per cent from £157.8 million in 2003.
The growth has been attributed to TFC specialising in niche areas like business to business loans which have been deemed too small for many of the larger lenders.
Managing director Jim Rowley said: "When TFC was established in October 2001, it became the biggest start-up finance company in the UK and the biggest company start-up in the UK, of any status, since the mid-1990s. It was a challenging period to say the least, but we focused and drove forward - and it's paying off."
The Chester-based independent finance company - one of the biggest in the UK - provides branded, niche and specialist loans to the consumer market through more than 100 affinity organisations and 1,000 car, motorcycle and caravan dealers.
It also sells cars to the public under the Approved Car Finance banner.
Mr Rowley said: "Our fiveyear plan is £1 billion worth of loans by October 2006 - we are on target.
"Given we launched in the economic aftermath of 9/11 it was, of course, initially a massively tough challenge, but nevertheless we have found and developed niches, and we have won profitable business in fierce competition with more established providers.
"We have made and agreed affinity deals with more than 100 brands - including RAC Loans most recently - to provide finance and loans to their customers.
"We have demonstrated an understanding and appreciation of the automotive sector which has taken us into more than 1,000 dealers.
"We invested in new headquarters premises towards the end of 2004, which means we now have the space to grow even further."
In May 2003 TFC acquired the assets of Approved Car Finance from the receiver and turned the business around into a successful and profitable operation selling 10,000 cars a year.
In March 2004, TFC also acquired the block discounting operations of Abbey Business, which was its first move into business-to-business finance.
The firm has continued on the acquisitions trail, with recent additions including Benton Finance and County Leasing and Finance from Five Arrows Leasing Group, part of NM Rothschild Banking group, in March 2005.