2014 proved to be a strong year for the Alternative Funding market. Here, Simon Belton of BM Structured Finance, specialists in sourcing and restructuring debt finance for SME businesses, reflects on a positive year for the market and the business, and looks ahead to further growth and success in 2015.
The calendar year ending December 2014 saw an improving British economy, and record levels of business confidence and optimism. This, in turn, saw businesses starting to borrow again and, to support this, the year saw a number of new funders enter the market. It also saw an increased use of Alternative Funding (i.e. peer to peer lending, and internet based lenders etc.) Asset based lending also continued to grow strongly with the Asset Based Finance Association reporting that Q3 saw the highest ever recorded use of invoice finance.
The big banks continued to attract negative publicity for their perceived lack of support to the SME sector. To combat this, 2014 saw a number of the banks form relationships with Alternative Funders to enable them to refer clients that they could not help. This trend looks set to continue into 2015, and thus the Alternative Funding sector will continue to grow and attract new players.
On a more local level BM Structured Finance has had a very successful year, with lead volumes increasing month on month, and with client numbers up by over 200% on the year ending December 2013. The following initiatives have also been implemented:
– Strategic relationships have been formed with a number of key introducers, and these are already generating good lead volumes.
– BM Structured Finance now provides an extended range of services for the clients and contacts of the Beavis Morgan group of companies, including mortgage, development and bridging finance.
– BM Structured Finance has extended their geographical presence into the South West and North East of the UK.
– A panel of funders have been identified that have the appetite to underwrite commercial transactions, and provide a high level of on-going client service.
Some of the deals that were completed by BM Structured Finance in 2014 are detailed below:
Recruitment – A £4,000,000 group Invoice Discounting facility provided to a group of companies operating in the UK, USA, Singapore and Australia.
Outsourcing – A £750,000 factoring facility provided to a company that provides legal outsourcing services to customers based in the UK and the USA.
Leisure – A £2,600,000 Bridging Loan for a football club to replace 1st & 2nd Charge holders prior to a site re-development.
Construction – A £1,200,000 Development Finance Facility for a new start residential developer.
Recruitment – A £500,000 Invoice Discounting facility for a East Midlands based company providing temporary HGV drivers.
In summary, 2014 was a good year for both the Alternative Finance market and for BM Structured Finance. The hard work that has gone into the business has been reflected in the substantial increase in client numbers, with a strong pipeline going into Q1 2015. BM Structured Finance now has the knowledge, systems and contacts in place that will ensure that the business will continue to go from strength to strength.
For further information about how BM Structured Finance can help you and your business, contact Simon Belton on Telephone: +44 (0)20 7549 8003 or Email: simon.belton@bm-structuredfinance.com or visit www.bm-structuredfinance.com.