Given our background in equity, you may be wondering why we raised a debt fund…
The answer: It is clear that lending to businesses continues to be restricted and there is a gap in the funding markets. The signs are that high street banks will retract further from the market as they reduce their loan books, and this will create further opportunities for the Alternative Lenders. It also compliments our Advisory and Equity piece well.
Read on to learn a little more about our business today…
What is your USP?
We are a short-term lender to trading business. We have a structure set up that allows all loans to be advanced to the borrower within 7 days of the first meeting. The credit policy requires sign off from Andrew and I and we would always attend a meeting, so we can make a decision within 24 hours. Our lending process is streamlined and not onerous as we are not restricted by the governance required in financial institutions. We have flexibility in our lending policy to allow funding to be structured to meet the requirements of the borrower.
Who are your target audience?
The SME Market is our target market. We are looking for businesses that have an immediate requirement for funding which will add value to them so the “opportunity cost” for borrowing the monies is far outweighed by the benefit received from utilising the funding.
What are the main requirements you look for when providing short-term lending?
Given the speed with which we can advance funding it is critical that we are fully secured. This can be from assets within the business or assets outside of the business. In the majority of cases we would expect the security to be provided by property assets.
It is key to understand the exit strategy to repay our loan as we are not providing longer term capital. It is also important that the borrower can afford to service the interest costs of the loan.
What differentiates you from other Short-Term Lenders?
The money is in the Bank Account. The speed at which we can provide the funding. Our credit committee is client facing and will agree the terms at a meeting with the borrower. We can provide flexibility as our funding is not provided by a regulated financial institution, albeit we are responsible lenders.