The first thing to know about how we work is that we are in the business of matching high quality, growth companies with a strong network of investors but only as and when needed and always on the very best terms that can be found.
This is unusual. We are creating a new category of growth capital based on substantial experience of working with highly successful companies.
Why are our terms the very best on offer?
We do not compete with banks. Bank finance is secured on property ('fixed assets') so it is always going to be the lowest cost finance but it is not comparable. It’s basically a more expensive mortgage than a typical residential mortgage. Or it could be equipment/vehicle leasing from a bank or other large finance provider. When you’ve exhausted this option, where can you go for real growth capital?
Equity investors, if you can attract them, will need a big say in how you run your business and will need an exit route ie sale of your business. And a great return for the risk and complexity.
We are plugging the very large gap between banks and equity investors.
Our terms are transparent and straightforward to understand. They get better the more you trade with us.
Any other options?
The only other option is conventional invoice finance – disclosed factoring is the most common product offered to small businesses. This typically involves onerous 12-18 month lock-ins, minimum monthly fees and hidden fees, especially on termination. Their best rates are only available to those that undertake to sell all of their invoices to the factor. And your customers will know all about it. This is usually not attractive to higher quality growth companies with large customers. For larger companies, there are confidential options but again you will need to lock into an exclusive, whole book arrangement with onerous termination provisions – this is usually more than you need most of the time and therefore overly costly.
The headline rates for conventional invoice finance can look attractive but the devil is in the detail. We do not operate that way – our fees are easy to understand and, based on experience, much better value than any other provider. And it’s truly confidential.
We realise that this can be confusing. Just call us and we will be very happy to have a relaxed, ‘non-pushy’ chat about why our customers love our product. If you’re still not sure, we are very happy to speak to your accountant or adviser as we are very transparent and keen to establish a trusted relationship. That’s why we do not lock-in our customers.