UNSECURED DEBT FINANCE FOR GROWTH, INVESTMENT AND ACQUISITIONS

Traditionally lenders have required security in order to lend to businesses, either on the assets of the business through fixed or floating charges or on the personal assets of the shareholders via personal guarantees. Not all businesses have the collateral to support the bank criteria needed to fund their growth, development or succession planning. The answer is having access to a fully unsecured loan, with no personal guarantees, debentures or other charges providing long-term flexible funding needed to achieve their goals.

OUR PARTNERSHIP

Through our partnership with Caple we can help businesses access unsecured loans of £0.5m to £5m. Caple Loans offer long term flexible finance to support strategic goals and accelerate growth with terms of between 2 and 8 years. Caple addresses the gaps in the funding landscape, where traditional lenders are unable to provide sufficient credit, by providing credit against future cash flows, not collateral. Our partnership aims to extend the debt capacity of established SMEs and owner managed businesses.

The loans attract a fixed interest rate of between 6% – 12% and amortise in a straight line in quarterly payments over the term of the loan. Lending is truly unsecured, no personal guarantees, debentures or warrants. Loans can be used to fund working capital, development capital, fixed asset investment, acquisitions, management buy-outs, management buy-ins and share buybacks. After 2 years there are no penalties for early repayment. In addition, there are no requirements for third party commercial or financial due diligence and by using a standard suite of documents there are no third party legal costs either.

WHO WE ARE

Park Capital is an award-winning corporate finance advisory firm based in London, founded in 2010. We help businesses address the funding gap where traditional lenders are unable to provide sufficient credit in the right format. Businesses looking for growth, MBO/MBI or acquisition finance often overlook unsecured loans due to complexity, fees or uncertainty over the outcome of their application. Through our partnership with Caple we aim to eliminate uncertainty and provide fairly priced loans within a simple and efficient process, with support from our team in the application process.

WHAT WE DO

As a Caple Partner, we help clients with the application process; assessing the eligibility of the business and assisting with the preparation of all the necessary documentation including a business plan and forecasts as part of Caple’s funding requirement. Once a submission is made, the lending process takes between two to three weeks. We manage the process on behalf of clients all the way to drawdown, allowing clients to get on with growing their business.

CRITERIA

To qualify for an unsecured loan through Caple, your business must meet the following basic criteria:

Turnover greater than £1 million and less than £50 million
Total assets (not net assets) greater than £1 million and less than £50 million
3 years of reported trading history, 2 of which must be profitable
The loan cannot be solely for the purpose or repaying existing senior debt
No late payment or repayment demand event over the last 3 years

This debt product is suitable for most sectors but there are some where it cannot be used, those are:

a. Property Investment (unless owner occupied)
b. Property Development
c. Financial and Insurance Sectors
d. Nightclubs & Gambling
e. Hotels & Restaurants
f. Production & trade of tobacco and associated products or R&D and/or technical applications to support the production of, or trade in, this sector
g. Production & trade of weapons and ammunitions or R&D and/or technical applications to support the production of, or trade in, this sector
h. Production & trade of pornography or R&D and/or technical applications to support the production of, or trade in, this sector
i. Nuclear Power & Nuclear Fuel Cycle
j. Palm Oil
k. Oil sands
l. Mining
m. Coal fire power generation
n. Wood pulp (upstream & downstream)

If your business operates in one of the excluded sectors, other than (g) or (h), please contact us because we may still be able to assist you with finding a suitable funding partner.

Please get in touch to discuss whether we can help your business to thrive.