Alternative finance provider secures £3.5m boost

12-Dec-2018

Creative Capital, a Runcorn-headquartered provider of short-term funding to SMEs, has agreed a new multi-million pound deal with Conister Bank.

The £3.5m facility will enable the alternative finance lender to meet demand from small businesses looking to fund growth opportunities on a transaction-by-transaction basis.

It provides rapid access to selective invoice finance, trade finance and stock finance facilities for a diverse range of SMEs including importers, wholesalers, manufacturers and those in construction.

Launched in 2010, the business was established in response to the retrenchment of traditional high street finance providers, which had dramatically reduced lending to SMEs following the financial crisis and subsequent recession.

To date, Creative Capital has provided over £100m of funding to over 250 businesses looking to exploit new growth opportunities such as contract wins, large orders, international deals or seasonal spikes.

The business employs a team of ten and has a regional presence in the North West, the South East, Yorkshire and the Midlands.

Sam Forshaw, sales and marketing director at Creative Capital, said: “This is a significant milestone that enables us to ramp-up support for UK SMEs and accelerate the development of our innovative model of finance provision and client support.

“In these uncertain times, flexible short-term funding is proving extremely popular as business owners increasingly look to exploit growth opportunities whilst remaining fleet-of-foot.

“Very few providers offer the range of facilities we do to SMEs. By combining the support of Conister Bank with the existing backing of private investors, we can help more small businesses access tailored funding solutions that meet their exact needs.”

Douglas Grant, managing director at Conister Bank added: “We are delighted to be providing a revolving credit facility to Creative Capital who deliver vital funding and support by way of short-term working capital facilities which form an important sector of the SME market.

“Creative Capital’s innovative model along with our RCF will create future opportunities for growth and diversification of products. We look forward to working alongside and supporting the team.”

Max Ward and Paul Billingham of Warrington-headquartered Knight Debt Advisory were principal advisors on the deal.

Max Ward, director at Knight Debt Advisory, said: “Alternative finance has been a high growth and much needed market post global-financial-crash. The work Creative Capital do in supporting SME business owners is something we are proud to help. We thank Conister Bank for working with us to facilitate a commercial structure that will enable the Creative Capital business to continue to grow its support for SMEs.”

Legal advice was provided by Alex Chapman of Liverpool-headquartered Bermans, a full-service commercial law firm for the SME sector that is a market leader in asset and invoice finance.

Alex Chapman, partner at Bermans, said; “The ABL team at Bermans has worked alongside Creative Capital since its formation and we are delighted to have assisted in its further growth with this significant re-financing deal. We have no doubt that the experienced and professional management team at Creative Capital will go from strength to strength with this extra financial muscle at its disposal.”