Caple supports the growth of the SME energy saving experts
Alternative SME credit specialist Caple has helped The Energy Check, a business energy-saving consultancy, to access a £2.1m six-year fully unsecured growth loan. As a result of this, the business expects revenue to grow by 155% and to increase jobs by 22% over the next three years.
Newcastle-based The Energy Check helps SME business owners to reduce their energy costs and emissions. It will use the loan to meet increased demand and grow into new markets.
Companies like The Energy Check which provide business services can find access to secured funding a challenge because they have few physical assets. Banks generally need tangible assets as security for loans, so raising additional finance through banks to grow is not open to them.
Caple does not ask for security, floating charges or personal guarantees.
Dominic Buch, co-founder and managing partner of Caple, said: “Our focus is on helping small but ambitious businesses like The Energy Check with the funding they need to grow. It is businesses like these that will help rebuild the economy and create new jobs.
“Many small firms struggle to access genuinely unsecured lending which puts a brake on growth at a time when we need the UK’s SMEs more than ever. This deal demonstrates that small growing firms can look to alternative funding options to help them invest and expand.”
Dave Winton, CEO of The Energy Check, said: “This funding will support our continued growth in the UK energy sector and it will help even more SMEs to save energy and limit their impact on the environment.
“It is difficult for any business to establish confidence with funders for unsecured lending on this scale, let alone in these times. But Caple recognised the strength in our leadership team, our financials and our business strategy. As a result, we will create jobs, enhance our offer, and generate stronger business performance and have a more positive impact on the environment.”
The Energy Check is a leading energy and carbon consultancy that works with SMEs to reduce their energy costs, consumption and emissions. The consultancy does this by undertaking site surveys to identify reductions in energy procurement costs and energy-efficient technology solutions. As a result of increased demand from SME business owners, The Energy Check has grown significantly in recent years.
Caple is the UK’s first firm to offer access to long-term unsecured funding of up to £5m based on the future cash flows of the SME. It requires no collateral or personal guarantees as security. The funding also works alongside existing secured financing, meaning firms can have access to more funding than they would get from their bank alone. It also allows them to maintain their existing financial relationship.
Caple’s technology platform supports a network of accountants and financial advisors to SMEs who identify suitable borrowers and prepare the loan application materials. This enables an efficient and robust credit process. Karl Hodson, partner at BTG Advisory advised The Energy Check. ABL, a business finance consultancy, introduced The Energy Check to BTG Advisory.
Karl Hodson, partner at BTG Advisory, who advised The Energy Check, said: “The Energy Check is a strong performing business growing significantly. It has a strong management team and board who have delivered excellent performance, largely through reinvestment of cash flows. As an asset-light business, there are limited options available for SMEs like The Energy Check to accelerate their growth path, so it is great to be able to support them on this journey.”
The funding Caple facilitates is part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform, which enables SMEs to access funding from institutional investors.
