JAGUAR Land Rover (JLR) has confirmed a funding deal worth £170m from GE Capital.

The working capital facility will last for five years and is financed by JLR finished vehicle stocks between the production line and onward sale to dealers.

JLR Chief Financial Officer Ken Gregor said: "We are pleased that our funding plans have further progressed and welcome the confidence shown by GE Capital in the Jaguar Land Rover business."

Rich Laxer, GE Capital European, Middle East and Africa President and Chief Executive, added: "Today’s deal is further evidence of our commitment to supporting important industries in the UK and Europe and finding funding solutions that are tailored to companies’ asset portfolio."

He added: "This is the first time that we are aware of in Europe, that a facility has been created to leverage this part of the distribution cycle and is demonstrative of how our pan-European asset and structuring expertise can truly benefit our customers." JLR will be able to draw down cash as soon as vehicles roll off its three UK production lines, including the Halewood plant in Knowsley which currently employs about 2,000 staff making Jaguar X-Type and Land Rover Freelander vehicles.

The facility will boost the working capital for Jaguar by shortening the 30 to 40-day gap it has to wait between producing cars and delivering them to dealerships.

Tata, the Indian conglomerate which bought JLR last year for £1.15bn, has had to cut 2,500 jobs, slash car production by more than 100,000 units and freeze pay and bonuses in response to tumbling car sales caused by a lack of finance for prospective car buyers during the downturn.

Tata broke off talks with the UK Government over a £340m loan guarantee from the European Investment Bank earlier this year.

But, in August, it confirmed a series of commercial loans, including a £75m deal with Bank of Ireland subsidiary Burdale.