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January 24, 2020

Arbuthnot Commercial ABL supports MBI of Flotronic Pumps

Arbuthnot Commercial ABL has supported the management buy-in of a West Sussex-based industrial manufacturer by entrepreneur, Stuart Whitehouse.

Whitehouse acquired Flotronic Pumps, which produces air-operated double-diaphragm pumps with a £1.5m asset based lending facility provided by Arbuthnot Commercial ABL comprising of receivables finance, together with a plant & machinery term loan and a cash flow loan.

Not only did the facility support the purchase consideration for the management buy-in, the revolving receivables element continues to deliver on-going working capital with the flexibility to grow with the business.

The pumps are used across a wide variety of industries and their unique ‘one-nut’ design allows for easy access for rapid disassembly and inspection in situ without disconnecting pipework, critical in hazardous and explosive environments where speed is essential.

Stuart Whitehouse was attracted to the deal in view of the business’s stable historic trading performance and potential for growth. With his background as a qualified chartered accountant and having spent 22 years running and growing a family business, Stuart is perfectly placed to drive the business forward.

Stuart Whitehouse, CEO, Flotronic Pumps Ltd, said: “The great thing about working with Arbuthnot Commercial ABL as a client is that you feel an important part of their business. That personal touch comes across in everything they do, from their service and support to the smooth and straightforward delivery of the facility. Transactions such as this are clearly a well-trodden path for the team at Arbuthnot and they make their experience count. We look forward to expanding our distribution network significantly and to furthering our international growth as a result of this deal.”

January 23, 2020

Brewery triumphs after £10,000 social media win from Liberis

Two years after opening, and a year after winning £10,000 in a business finance competition, Barnes-based brewery Jeffersons has demonstrated how a thorough understanding of a niche market, intelligent business planning, and access to funding are the key ingredients to help a small business to flourish.

The £10,000 win came from a social media competition organised by Liberis Finance, an award-winning funding provider that is on a mission to support small businesses in their growth strategies. Freddie Jefferies, business partner and brother to George Jefferies, entered the competition without telling anyone:

“You were asked to tell Liberis how you would use the funding in your business. After applying online I had a follow up call with Liberis and then completely forgot about it,” says Freddie.

A few months later George received word from Liberis that they had won! He couldn’t believe it and finally told his brother that they were receiving a £10,000 cash injection!

The brothers launched Jeffersons Brewery in leafy, South-West London’s Barnes after they identified a gap in the market with the majority of London’s trendy micro-breweries being based in East London. They were also receiving considerable interest in what was initially George’s hobby:

“It started out with a home brew kit, and it took a year and a half of testing ingredient combinations before creating a palatable beer,” says George. “We brewed our ‘Hoppily Ever After’ beer for our brother’s wedding and got great feedback, as well as commercial requests, helping us to realise we could make a business out of this.”

After two years of business planning and obtaining a commercial brewing licence as well as £40,000 funding from a Government-backed, non-profit, start-up finance organisation, StartUpLoans, the brothers launched Jeffersons at the July 2017 Barnes Fair:

“It was a really supportive community event, where we had exclusivity and managed to sell over 1,000 pints of beer” says Freddie. “The journey since then has been a steep learning curve, as we are doing everything in house, from bottle and packaging design to delivery logistics.”

The £10,000 win from Liberis Finance in October 2018 meant that the brothers were able to expand production capacity by increasing tank space, and sell their beers on wholesale sites such as Eebria:

“This has been a great way to get our business out there, producing a ripple effect where people actually approach us,” says George. “We have since won an exclusive contract with the Riverside studios, marking an exciting time for us. We couldn’t have done it so quickly without our Liberis win.”

Freddie says their experience of the alternative finance community has been excellent:

“It is fantastic that there are alternative options to funding outside of traditional banks, especially those that specialise in small, start-up businesses,” he explains. “We are extremely grateful to Liberis and have been impressed with its responsible and convenient funding solutions, as well as the support it provides to SMEs. Liberis has marketing workshops planned, designed to help people exactly like my brother and I, so we’ll be looking out for more information on that.”

Looking forward, George and Freddie have big plans for their business and while there is always more to learn they believe they have a good proposition:

“The biggest factors in a brewery’s success are consistency and quality, as well as adaptability. It’s a fickle market and vital to keep producing new beers that meet the sector’s fast-moving trends and styles,” says George.

“Our own tap room is on the road map for us, as is further increasing production capacity, investing in equipment, marketing and branding and getting ourselves better known at craft beer exhibitions,” continues George. “Three years from now, we hope to be in supermarkets and exporting internationally.”

“The overall plan is to build a chain of tap rooms,” Freddie adds. “It’s a crowded market and there is limited tap space in pubs, so we see this as a key area for growth.”

Rob Staathof, CEO of Liberis Finance, says the competition was a fantastic opportunity to demonstrate tangible support to its key audience and collect essential business insight:

“It enabled us to talk to great swathes of interesting SMEs, eager to grow and able to tell us what support they need from the alternative finance sector. We’re delighted to see the achievements of the Jeffersons Brewery and proud to have been able to help in the business’ formative years.”

January 22, 2020

Lanark pub set for transformation with £350k Assetz Capital loan


Marketplace lender Assetz Capital has provided a £350,000 refinance loan to The Crown Tavern pub in Lanark to fund a refurbishment and third floor residential conversion.

Following the decision by an existing lender to withdraw from the sector, Assetz Capital helped The Crown Tavern with the refinancing package, freeing up additional capital to undergo a light refurbishment of the two-story bar and restaurant.

The loan will also see the renovation of the third-floor space, transforming it into a pair of two-bedroom residential apartments.

As a long-established traditional pub located in the heart of Lanark (Hope Street), The Crown Tavern has been run by Irene Alexander for over 14 years and is popular with locals and tourists alike. Boasting a bar and restaurant area set over two floors serving homemade meals, it also hosts regular quiz nights and Lanark club meets, such as the Round Table and Inner Wheel, each month.

Irene said: “Assetz Capital helped us out of a tough financial situation, allowing us to get back on track and assess where we could invest money into other areas of the business. We have wanted to convert the top floor of the building for some time now as it was wasted space, and this loan has given us the capital and peace of mind needed to do that.”

The loan follows a number of leisure and hospitality deals for Assetz Capital in Scotland, including St Andrews-based luxury guest house Dukeside Lodge.

John Hewitt, regional director at Assetz Capital’s UK – North team, said: “The Crown Tavern is a real gem of Lanark and that is solely down to Irene’s management over the years and the team she works with. We are pleased to have had the opportunity to help with these new plans, and we look forward to seeing them come to fruition in the coming months.”

The loan was brokered independent consultant Gerry Lafferty.

January 20, 2020

Stone Group expands into new markets with £17.5m funding

Specialist SME lender Shawbrook Bank has delivered a £17.5m working capital solution to Stone Group, the leading provider of IT solutions to the public and private sector, to expand its offering within the private sector and the gaming equipment markets.

Stone Group has over 25 years’ experience in supplying digital transformation services, including technology hardware, IT support, data security and compliance, maintenance and complementary services to the education and wider public sector in the UK. The business also specialises in IT asset lifecycle management and secure disposal of confidential data for local government departments and law enforcement agencies through its award winning and fully accredited IT Asset Disposal (ITAD) facility.

With an increased focus on GDPR and data security in the private sector, Stone Group is growing awareness of its service offering within this market and requires the funding to grow the dedicated team who will support this. Stone Group is also keen to maximise opportunities in the gaming equipment arena, having recently acquired DinoPC, a supplier of custom PC’s. It is also looking to expand its geographical presence across the UK.

The Shawbrook team led by Oliver Wilson developed a flexible funding proposition that combined an invoice discounting facility and cashflow loan, addressing Stone Group’s multiple objectives and taking into account the seasonality of the business.

Stone Group was advised by Cadence Advisory Limited.

January 16, 2020

Housebuilding firm lands £4.1m loan from Assetz Capital


Create Homes (Land & Property) Ltd, in partnership with marketplace lender Asstez Capital, has secured a £4.1m development loan to fund the acquisition and construction of a new residential site in Pilling, Lancashire.

The housebuilder is part of the residential arm of the Create Construction Group. The North-West based commercial and residential developer was founded in 2006 and already has two successful residential developments in the Lancashire area. Ash Meadows, in Inskip, was completed in February of this year, with a St Petersfield development due for completion in 2020.

The Pilling site is situated in a semi-rural village within the Wyre borough of Lancashire, which is 11 miles south of Lancaster. Once completed, the first phase of the development will consist of a mix of 11 detached and semi-detached three-bed houses and nine four-bed houses. The initial construction will take 16 months.

While the loan will be used to assist with the site purchase and the initial phase one development, there are also plans for further units in phase two, with the site eventually consisting of 37 units, which will include four affordable homes.

Since establishing in 2013, Assetz Capital has lent more than £900m to UK SMEs, funding projects such as commercial properties, housing developments, care homes and purpose-built student accommodation (PBSA). In the last year, the marketplace lender has funded new housing projects representing the equivalent of 1 in every 100 new homes built.

Andrew Llewellyn, regional relationship director at Assetz Capital said: “We are pleased to support Create’s development in furthering their presence in the Lancashire region, adding to their current two sites. By supporting their first phase of construction, we have been able to provide a loan that is flexible for the firm to progress at a rate which suits them. This investment is particularly important, supporting the demand for housing across the Lancashire region and building on our objective to positively impact the overall UK housing market.”

Andrew Wright, managing director at Create Developments said: “Assetz Capital’s support in this development has been vital in adding to our developments across Lancashire. The investment has allowed our company to expand, creating jobs in the local area and positively affecting the local economy by making the region a sought-after area for people to live.”

David Rainford, property finance director at Cowgills, who secured the funding for Create through Assetz commented: “We have been working with Create for over three years now and have assisted them in securing funding for a number of projects across the region. SME developers are crucial to the housing crisis in the UK, and funding through lenders such as Assetz is essential to ensure housebuilders like Create can continue to grow”.

January 16, 2020

Oakman Inns & Restaurants refinance with Cynergy Bank

Oakman Inns & Restaurants Limited, which owns and runs 24 pubs, restaurants and hotels in the South-East and Midlands, has refinanced the debt on two of its properties. These are: The White Hart in Ampthill, Bedfordshire; and The Royal Forester in Ascot, Berkshire.

The White Hart is a historic Grade II listed building, which features a wall mural above the bar’s fireplace of the Prince of Wales feathers, created by local artists in 1646. The pub also has a 1930s dining room which was built toward the end of the arts and craft era.

The Royal Foresters has been a meeting place in the centre of Ascot for over 140 years. The historic building has been refurbished, remade and redesigned since joining the Oakman Inns group. It now has 24 guest rooms, each with bespoke, contemporary interiors.

Cynergy Bank provided circa £11m in newly negotiated loans for the two properties (£3.172m for The White Hart and £7.809m for The Royal Foresters). Both loans were previously being charged at a higher interest rate and the new deals will significantly reduce interest charges. The loans were provided with an initial 12-month interest only period followed by repayments modelled over a 24 year term.

Steven Kenee, chief investment officer of Oakman Inns & Restaurants commented: “I am delighted to announce the completion of the refinance with Cynergy Bank. The deal has significantly reduced our cost of capital. Our relationship director, Steve Crosswell and all the team at Cynergy proved to be a sensible, pragmatic and straightforward partner to deal with throughout the process. We are very much looking forward to the next phase of our growth, something that will be much easier with the new financing package in place.”

Ravi Sidhoo, managing director, Cynergy Bank private & business banking commented: “Cynergy Bank is delighted to have concluded this transaction with Oakman Inns. We pride ourselves on working with our clients to understand their business needs and aspirations. With our local, skilled relationship managers, we quickly learn our client’s needs, we understand the market and, unlike mainstream lenders, can deliver certainty at speed.”

Cynergy Bank’s sector head Mark Dearman, director healthcare & leisure commented: “Oakman Inns are a leading independent pub company, operating to the highest standards and we are pleased to have developed a relationship with Steven, Peter and team to become the group’s largest banking lender. We look forward to developing the relationship further in the months and years to come.”

January 16, 2020

Pluto Finance completes fourth development loan for Stonegate Homes

Pluto Finance has completed its fourth development loan to repeat borrower Stonegate Homes.

The £8.7m stretched senior development loan will fund a new 49 unit residential scheme in Gerrards Cross for Stonegate Homes, a leading developer active throughout Greater London and South East England. This follows another £21.0m Stretched Senior Development Loan to the borrower last year on a 99 unit scheme in Godalming, Surrey.

Greg Dunne, lending director at Pluto Finance, says: “We are delighted to be providing our fourth loan to Stonegate Homes. This again highlights the focus Pluto puts on repeat business with our clients, recognising the excellent customer service, pricing and flexibility that we offer. As a one-stop shop for property lending, we are able to provide senior, stretched senior and bridging loans to our borrowers – offering a solution for any property financing requirements.”

Jerry Hinds the founder of Stonegate Homes comments “We are delighted to have recently completed our fourth loan with Pluto Finance. It is a relationship that is continuing to grow and we look forward to working with them on more schemes in the future.”

January 15, 2020

Aspen overcomes obstacles to complete £3.4m bridge

Aspen Bridging has finalised one of its largest deals to date having completed a £3.4m, 73% loan-to-value bridge on five newbuild flats in Central London.

The client, a Chinese national and an experienced property investor, faced losing over £1m in deposits having secured the apartments in 2017 only for the contracts to expire with another lender.

Winston Hashtroodi, a broker at Capricorn Financial picked up the case and sent the deal to Aspen. In line with the lender’s time-based service excellence targets an illustration was provided in 15 minutes and a formal DIP issued in three hours, including confirmation of figures via the existing Savills valuation.

Within a 15 minutes of authorisation, legals were instructed with Shoaib Patel at Fieldfisher and a retype of the valuation was requested, with the lender’s reassignment process removing the need for a further report.

A senior Aspen underwriter was on site the next day to meet the client, visit the security and understand the client’s requirements and business model. Finance was offered at an initial interest rate of 0.59% for an eight month term, with the applicant planning to refinance.

As the original local searches undertaken had expired Aspen accepted indemnity insurance to speed up the timeline to completion.

Also the client was buying a number of the units in individual name and the remainder in a corporate name, so the lender structured the deal via the corporate using a third-party charge on the individual name units.

In addition, before Aspen had received the enquiry, the contracts had been withdrawn and despite positive indications at the last moment the developer refused to reissue, so a quick solution was needed.

Jack Coombs, director at Aspen, immediately called the developers to assure them completion was on track and remind them of their obligations to the borrower. This provided sufficient confidence for the contracts to be reissued and ensured a smooth completion.

Hashtroodi said: “Aspen pulled it out of the bag once again. The underwriters and case managers worked with me, my client and the solicitors to complete on five flats and save my client in excess of £1m.”

The borrower wrote: “I’ve just finished doing a deal with Aspen Bridging. I was very pleased with the whole process from the beginning till the end. The team is very professional, friendly, and they were working hard to make things happen on time. The customer care is absolutely amazing.

“From a commercial point of view it is also very completive in terms of the rate in the market. I definitely will come back again and again.”

January 13, 2020

Ultimate Finance provides more than £1.6bn of funding in 2019

Specialist asset-based lender, Ultimate Finance, broke its own annual lending record by providing funds of more than £1.6bn to SMEs across the UK last year.

The newly released figures show that Ultimate Finance finished the year with a record high loan book of £265m. Further growth in the size of the company’s client base means Ultimate Finance ended the year supporting more companies than ever.

This growth is on the back of continued focus on strengthening relationships with introducers across the UK and another year of strong development of Ultimate Finance’s asset-based lending portfolio. Highlights include:

  • The average size of Invoice Finance deals more than doubling with facilities of up to £5m
  • Asset Finance hitting a new annual high, with the loan book exceeding £55m
  • The Bridging Finance loan book growing close to £40m, an exceptional year-on-year increase of 23.5%

Josh Levy, CEO at Ultimate Finance, said, “Ultimate Finance has prospered in 2019 against the backdrop of an unsettled year for many UK businesses. Uncertainty surrounding Brexit and the general election were contributing factors to business investment falling in five of the last six quarters, however it is encouraging to see business confidence returning. In this context, I’m proud to announce another record-breaking year of lending for Ultimate Finance with over 1,000 new businesses supported by our funding solutions.

“Our flexible, solution-driven approach to funding and excellent customer service increasingly make us the funder of choice for businesses wanting to invest and thrive. To that end we were pleased to be a founding signatory of the SME Finance Charter to demonstrate our unwavering commitment to facilitating growth for ambitious businesses in all market conditions.

“Our continued growth mirrors a trend of businesses becoming simultaneously more comfortable with alternative finance providers and moving away from traditional banks. This trend, along with the investment in developing our introducer relationships, present us with a big opportunity for 2020 to continue supporting more businesses around the UK.”

January 13, 2020

Domain Therapeutics secures €6m debt financing

Domain Therapeutics, a biopharmaceutical company specialised in the discovery and development of new drug candidates targeting G Protein-Coupled Receptors (GPCR) in neurology, oncology and rare diseases, announces it has closed a €6m ($6.7m) debt financing to expand its proprietary drug portfolio and prepare the next round of financing.

After raising €3.5m ($3.9m) in 2019 from an existing shareholder, Seventure Partners, Domain Therapeutics will use this additional financing to accelerate the development of its valuable portfolio. The French Public Investment Bank (Bpifance), Banque Populaire Alsace Lorraine Champagne (BPALC), Credit Industriel et Commercial (CIC) and Caisse d’Epargne Grand Est Europe (CEGEE) have participated in this non-dilutive financing as a strategic step towards a significant fund raising in 2020 aimed at supporting the development of its most advanced assets.

“This transaction shows the confidence of the banks in Domain Therapeutics and its business model and recognises our ability to syndicate financial partners around our business objectives,” said Pascal Neuville, CEO, Domain Therapeutics. “This loan is part of our stepwise strategy leading to a series C in order to speed up our business activities.”

Domain will launch multiple programs, on valuable GPCR targets, aimed at reinforcing its portfolio of first-in-class drug candidates and at generating multiple-target collaboration opportunities with pharma partners.

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