Commercial SME Loans

With the increased funding and flexibility that is now available to Kingsway, we’re able to offer our Brokers and Introducers a Commercial Loan product for their SME customers.

The minimum loan amount is £25,000 and the maximum is £75,000. Terms between 1-3 years are available and Directors Guarantees are mandatory. Non-Regulated loan business only and a 1% Administration Fee applies.

Certain sector exclusions apply in line with Kingsway’s Underwriting Guidelines and strictly no adverse. Speak to your Broker Manager today for more information on the required criteria and rates.

Sale & Lease/HP Back now available for invoices up to 5 years old!

Kingsway is now able to consider equipment that was purchased up to 5 years ago for Sale & Lease back and Sale & Hire Purchase back.

We will consider proposals where the original invoice is available for our retention, it is no more than 60 months old and proof of original payment is evidenced.

Guarantees are mandatory for all corporate entities and generally a minimum IRR of 14% will apply.

This facility can also be used in circumstances where the equipment supplier is based outside the UK and the customer has had to make payment in advance of the equipment being dispatched. Standard rates will apply in this event and guarantees will not be mandatory.

Kingsway (Praetura Group) secures £75m lending facility from NatWest

Praetura Asset Finance Group (PAF Group), are proud to announce that they have closed a £75m securitisation facility with NatWest Markets. The rated facility will allow PAF Group to expand its origination capacity, enabling growth in its loan book to provide up to £200m to SMEs across the UK.

Having already received £30m in funding from NatWest into PAF Group’s existing loan books, this latest financing for Praetura is a further sign of the strength of the business. The facility will enable PAF Group to increase its funding capacity.

The deal is part of PAF Group’s long-term strategy of leading organic growth and consolidation in the sector, having recently acquired Cheshire-based Kingsway Finance in a seven-figure deal. Now, as one of the UK’s largest asset finance lenders, the company is well on track to pass its target of a £250m loan book by 2021.

Peadar O’Reilly, Founding Director of Praetura Asset Finance Group, who led and structured the transaction, said: “This securitisation is an exciting development for Praetura, not least because it validates the quality of our loan book and the talent of our team. With our debt rated for public markets, it forms a platform for organic growth and gives us further capability to enhance that growth through the acquisition of complementary businesses and/or teams. We’re an ambitious company; we set Praetura Asset Finance up five years ago and we now have a loan book of over £100m. This inaugural securitisation will help us grow the company significantly and continue to achieve new ambitions.”

George Ross, Director, Financial Institutions Origination & Solutions, NatWest Markets, said: “We are pleased to have helped Praetura with a financing solution to meet its growth ambitions. This rated facility is a key step towards enabling Praetura to access capital markets for a public debt issuance in the future.”

Praetura Asset Finance Group was supported in the securitisation by EY and RM Funds, a subsidiary of RM Capital. EY served as financial advisor to Praetura, helping the company to source its financing partners, structure the rated transaction and develop a hedging strategy. RM Capital provided funding for the securitisation, while also advising on the process.

Jordan Blakesley, Senior Manager, EY FS Corporate Finance team, said: “We’re very pleased to have advised Praetura on this transaction. The securitisation demonstrates the strength of PAF Group and the new structure provides the capacity to support even more UK SMEs with their financing needs.”

Pietro Nicholls, Portfolio Manager, RM Funds, commented: “We are delighted to support Praetura with their long-term growth strategy. RM Funds continues to grow and diversify its portfolio of secured, high quality debt investments. This is our third investment with Praetura and seventh investment into the speciality finance sector to date.”

Kingsway becomes part of Praetura Group

Praetura Asset Finance have today announced the expansion of their portfolio, through the acquisition of Kingsway Asset Finance.

The acquisition will create one of the largest independent asset finance companies in the UK. With a combined loan book of over £100m, the enlarged group will offer SMEs a wide range of services to help them thrive and grow.

Praetura’s expertise in hard assets combined with Kingsway’s specialist knowledge of soft assets and business loans will give the group more flexibility in its approach to lending and help it scale more quickly.

Founded in 2013, Praetura Asset Finance was the first truly independent asset finance funder to enter the UK marketplace in 15 years. Its client-focused and flexible approach to lending has enabled the business to rapidly grow and cement its position within the industry. The deal with Kingsway – itself one of the UK’s longest established independent asset finance and leasing companies – marks Praetura’s first acquisition after years of organic growth.

By combining their expertise, the now 40-strong team will be able to undertake larger and more valuable deals. As part of the Praetura Asset Finance group, Kingsway will be able to access a wider, more secure funding platform, enabling faster growth. Adrian Anthon, the Managing Director of Kingsway, joins the board of Praetura Asset Finance, as well as taking equity in the combined group.

Mike Hartley, managing director of Praetura Asset Finance, said: “After achieving our five-year plan of building a loan book in excess of £60m, we wanted to take the business to the next level. Our new ‘buy and build’ model will be a key part of our growth strategy moving forward, and Kingsway Asset Finance was the perfect company to join us on this journey. The company complements what Praetura already does, allowing us to widen the group’s product range and help us get to where we want to be as a business.”

Peadar O’Reilly, founding director of Praetura Asset Finance, said: “The fact that Kingsway is a well-known business established on the same foundations as us was really important. They’ve got a talented team with strong management and an exceptional commitment to customer service, helping this country’s small and medium-sized businesses to fulfil their potential”.

Adrian Anthon, managing director of Kingsway Finance, said: “After 21 years as an independent company, I am delighted that Kingsway has joined the Praetura Asset Finance Group. From my first contact with Praetura, I was enthused by our common vision for the future of the enlarged entity and what we can achieve together. The fact that both companies have their own specific strengths and very little overlap was an important factor in my decision to sell Kingsway to Praetura Asset Finance.”

The acquisition was financed by RM Funds, a specialist provider of tailored debt solutions, which structured, executed and subscribed to an initial issuance of a £15m bespoke Loan Note programme.

Pietro Nicholls, Portfolio Manager at RM Capital, said: “We are delighted to support Praetura in their acquisition of Kingsway Finance. With a well-established mid-market enterprise, demonstrable cash flows and a highly experienced management team, Praetura fits our selective investment criteria. RM Funds is focused on growing and diversifying our portfolio of secured, high quality debt investments.”