New partnership provides additional funding options for SMEs

16-Jul-2019

Alternative SME credit specialist Caple and accountants Dains have announced a partnership to help Midlands-based SMEs access unsecured funding for growth.   

SMEs typically have difficulties raising money if they don’t have assets to put up as security to banks.  That can mean they instead have to make personal guarantees or dilute their ownership by issuing equity.

Now, through this new partnership, Caple and Midlands-based Dains will help SMEs across the region access long-term unsecured debt finance of between £500,000 and £5m. 

Caple is the first in the UK to provide access to unsecured lending based on the future cash flows of the SME.  The business requires no collateral or personal guarantees as security. Loans originated through Caple also complement existing bank lending. 

Roy Farmer, head of corporate finance and partner at Dains Accountants, said: “Caple has delivered the most significant change in the UK SME funding market in the last 18 months.  Caple’s offering is unique, and the unsecured loans it offers access to can make the difference between SMEs being able to access funds and implement their growth plans and not.” 

Caple originates loans through a partner network of accountancy and business advisory firms such as Dains.   

The way it works is that Dains assesses the eligibility of its clients for funding, supported by Caple’s proprietary technology platform.  It then prepares the business plans and financial forecasts, within the platform, that make the case for funding.

The partnership is part of Dains’ strategy to bolster the range of funding options it is able to recommend to SMEs and help them secure the finance they need to grow.   

Roy Farmer continued: “For Dains, our partnership with Caple represents a substantial addition to our funding armoury.  Through Caple we’re now better able to support SMEs across the Midlands in securing the finance they need.”

Dominic Buch, co-founder and managing partner of Caple, said: “Growing SMEs have very limited access to genuinely unsecured debt in the UK.  In a service-based economy such as the UK, this creates a barrier to growth and may push growing SMEs to issue equity instead of raising debt. 

“By complementing bank lending, Caple supports the long-term growth of the business.  Dains understands the benefits of the loans we offer access to and through its impartial and expert advice is helping SMEs access the funding they need.

Proving the appetite among SMEs, Caple has now completed nearly £30m in deals.  Caple and Dains have completed two deals together so far – a £3.5m loan with Smarts Plumbing Specialists and a £1.75m loan with Ornate Gardens.

The loans Caple facilitates are part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform, which enables SMEs to access funding from institutional investors.  BNP Paribas Asset Management aims to provide €1bn per year in funding to SMEs across Europe and €400m in the UK.