Funding the growth of your business
A challenge for many growing businesses is a lack of security to support the debt finance required to fund their growth, development or succession planning.
A fully unsecured loan, with no personal guarantees or debentures, is often a key element of the flexible funding many businesses require.
Unsecured loans are flexible, and can hence be used to fund a range of growth requirements including for example:
- Funding succession planning including management buy-outs
- Investment in technology and R&D
- Investment in stock and working capital
This is why MHA Moore & Smalley’s Corporate Finance team are working with, amongst others, Caple- a specialist provider to owner managed businesses and SME’s.
You might not have heard of Caple, this may be because the funding is not available for business to apply for direct. Caple require applications to be made through an accountant with knowledge of their application process.
Caple provide access to fully unsecured loans of £0.5m to £5m with terms of between 5 and 8 years. Other unsecured loans tend to be for up to 5 years, often significantly less, hence the term of the loan is a key USP for Caple.
Caple can provide an unsecured loan up to 70% of the total funding requirement. Hence Caple provide a solution where there is an appetite from a high street bank or other senior debt provider to provide up to 30% of the funding.
Key eligibility criteria include:
- Minimum turnover of £1m.
- 3 years trading history of which 2 have been profitable.
- The Caple loan represents up to c70% of the total funding requirement.
- There are sector restrictions.
Our approach is to work with management to provide the following:
- Eligibility assessment.
- Assisting with the preparation of the business plan and financial projections required as part of the application process.
- Assistance with due diligence enquiries.
- Assistance with the process through to draw down of funds.
The corporate funding market is dynamic with new funders entering the market. The Corporate Finance team at MHA Moore & Smalley have a wide network of contacts with funders (including Caple) and are well placed to assist you with your funding strategy.