All posts by Mike Day

Helping the buds of new business blossom

Over the past 12 to 15 months there has been an enormous concentration on providing funding to SMEs across the UK that have been severely hampered by the effects of a global pandemic.

The funding available from Kingsway Asset Finance is not only available for UK businesses going through those challenging times, but also for expanding and diversifying businesses, as well as the many new businesses that are emerging.

One example of Kingsway’s funding helping a new business was when we were recently asked to provide assistance for an innovative new company looking to offer a family-friendly office space and business centre. Among the many added attractions to the business and workers were an on-site childcare facility and nursery, cafe, play centre and events space, all under one roof.

The application for funding was to allow them to lease various types of equipment including tables and benches, seating and shelving, a nursery kitchen including work top units, acoustic panelling, fireplace cabinets, chairs, air-conditioning and audio visual equipment storage.

By leasing the equipment the customer was able to pay for it whilst it makes money for their business, rather than paying for the assets upfront and utilising essential cash reserves best used as working capital for the day to day running of the new business.

The enquiry came from Astmoor Finance, a broker new to Kingsway, so first things first, our BDM spent time with them to guide them through the initial proposal requirements – ensuring everything was in place to enable the deal to be reviewed by our credit team. Once all the basic information had been gathered, the proposal was formally submitted to underwriting , with the acceptance issued the very same day.

A minimum term finance lease to the value of £25,000 was arranged to provide finance for all the equipment required.

But we were up against time – an opening day had been arranged with invites sent out to local businesses and residents… the clock was ticking…

So now it was time for our Operations team to step in: working closely with the new broker to ensure the correct documentation was received and correctly completed and then processed for pay out. It wasn’t the easiest of deals to complete due to the many different assets and suppliers, all with different demands and expectations.

But the deal was completed in time for all the equipment to be delivered and installed ready for the grand opening, much to the satisfaction of the broker, their customer and their suppliers.

Operations Executive at Astmoor Finance, Robyn Gudgion commented: “we all really appreciate the assistance that Kingsway and Michelle Taylor-Mitchell in particular have given us to get this one over the line. You went above and beyond and we’re really excited for the next deal with you guys”.

Mike Day, Sales Director at Kingsway Asset Finance added: “this was a deal that illustrated how the team at Kingsway will always go the extra mile to help meet the demands of the customer, broker and supplier to create an excellent broker experience when dealing with Kingsway”.

 

Kingsway work in partnership with a wide range of asset finance brokers and business finance advisers throughout the UK. Kingsway are a patron of the National Association of Commercial Finance Brokers (NACFB), who are an accredited trade body representing over 1,900 commercial finance brokers in England, Wales, Scotland and Northern Ireland. A list of member brokers can be found on their website: www.findsmefinance.co.uk.

If you’re a broker or business finance adviser and want to find out more about working in partnership with Kingsway and the funding solutions we offer, please don’t hesitate to get in touch by calling 01625 540 600 or emailing enquiries@kingswayfinance.com.

 

Kingsway Asset Finance Ltd accredited under Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme is now closed to new applications.

If you have a query about CBILS, or wish to discuss an outstanding application, please contact us in the usual way.

 

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.”