ThinCats delivers £1.2m funding for fast-growing Serviced Office provider iHub
ThinCats has delivered a £1.2m loan facility to DHR Business Solutions Limited to help fund the company’s ambitious expansion plans.
Founded in 2015, DHR Business Solutions, trading as iHub Office, is a managed serviced office solutions company that specialises in providing private office space and co-working/hot desking solutions to established and start-up businesses across two flagship office sites. Current sites consist of three floors at City Tower in Manchester and a floor at Colmore Gate in Birmingham, with a second floor opening in Spring 2018.
DHR has signed up to 10-year leases at these locations and its customer ‘license agreement’ periods are predominantly 12 months. Taking on new office space typically involves an outlay of one year’s rental deposit in advance, in addition to substantial capital expenditure and working capital requirements spanning a 10-12 week fit out period. To grow the business in line with its projections involves building a close relationship with an entrepreneurial funder.
Rico Wong, founder and CEO of DHR Business Solutions Limited, said:
“The future of the serviced office industry is ever expanding, organisations don’t want to be tied down to long term lease agreements, rather the flexibility to take on smaller office space where the majority of overheads are included, thus keeping cost low. iHub offers this type of solution and house organisations of all sizes, helping them during their business growth journeys.
“The UK represents 36% of the serviced office sector globally and consequently there is a compelling opportunity for sustainable growth in this market. This is a very capital-intensive business, predicated on the ability to make large rental deposit payments in addition to considerable up-front investment in respect of fit out and staffing costs. The traditional banks were completely unable to get their heads around our business model, despite them being able to see that we are operating a growing business.
“That is why we wanted to work with ThinCats. They are truly a next generation lender, with the ability to understand the dynamics of a business that’s right at the heart of the ‘shared economy’ phenomenon. Unlike the banks, the ThinCats’ team listened closely to what we wanted to achieve and structured a facility that suited our needs precisely, rather than applying a rigid rulebook approach.
“This is an ambitious business with a very exciting future ahead. I would not hesitate to work with ThinCats on funding our wider expansion programme as we develop further exciting opportunities in other major gateway cities.”
Dave Sherrington, business origination, London & South East at ThinCats, added:
“DHR Business Solutions is operating in a fast growth sector with a strong track record, an experienced management team and a sound business plan. We are delighted to provide a more effective and efficient way for the business to access capital, providing certainty as they embark on their continued expansion. Once again, ThinCats has delivered a transaction that the banks simply couldn’t do. We are more than just a credible alternative to the banks, we are built for business and here to back our clients’ ambitions in the long-term.”
