All posts by Mike Day

Kingsway Asset Finance Ltd accredited under Coronavirus Business Interruption Loan Scheme

The Praetura Asset Finance (PAF) Group are pleased to announce that Kingsway Asset Finance Ltd has been accredited as a new lender for the Coronavirus Business Interruption Loan Scheme (CBILS) by the British Business Bank.

Delivered through British Business Bank accredited lenders, CBILS is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

Group company Kingsway Asset Finance will be offering CBILS term loan funding from £50,001 to £150,000 over two to five years, with no capital repayments for the first twelve months and no interest or fees payable for the first year of the agreement.

Peadar O Reilly, chief executive officer of Praetura Asset Finance Group, said: “This is another important development for the Praetura Asset Finance Group, giving further capability to enhance the range of funding facilities for small and medium-sized businesses in the group’s portfolio. The new CBILS funding facilities are vital to help our customers (both old and new) to stabilise, adapt and diversify”.

Applications for the new CBILS facilities will be opened to both new and existing SME customers of Kingsway Asset Finance via referrals from a select panel of approved broker and intermediary partners.

Mike Day, sales director at Kingsway Asset Finance, said: “At Kingsway we have a long history of supporting the borrowing requirements of the UK SME market. Now as an accredited non-bank lender, under the government backed CBILS initiative, we look forward to providing qualifying businesses with the much-needed support they require during these testing times, via our panel of selected intermediaries”.

 

 

About the Coronavirus Business Interruption Loan Scheme

 

The Coronavirus Business Interruption Loan Scheme (CBILS), delivered through British Business Bank accredited lenders and partners, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

It supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

Under CBILS, the first 12 months of interest on the facility and any arrangement fees will be paid by the UK government as a Business Interruption Payment. This means smaller businesses will benefit from no upfront costs and lower initial repayments. 

Detailed information on CBILS can be found on the British Business Bank website – Coronavirus Business Interruption Loan Scheme (CBILS).

 

 

The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorized or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS.

Covid-19

Due to Covid-19 and the Government restrictions currently in place, most of our staff are working remotely, therefore telephone calls to the office are limited at this time.

We request that ALL contact is initially made by emailing enquiries@kingswayfinance.com for a swifter response.

Thank you for patience and understanding during this time.

 

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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.”