Independent credit business unveils new loans for UK SMEs

Alternative SME credit specialist, Caple has completed two eight-year, fully unsecured loans for two UK SMEs in one week.

The firm has supported Grayson Thermal Systems (Grayson), a supplier to the automotive market, with a £2m loan.

Caple has also facilitated a £3m loan with Spinnaker International Ltd (Spinnaker), a manufacturer of cash protection boxes and asset tracking technology.

Caple has now completed seven deals worth £16.7m for seven UK SMEs and has more than £80m more in its deal pipeline.

Caple is said to be the first in the UK to offer unsecured lending based on the future cash flows of the SME. The business requires no collateral or personal guarantees as security.

Dominic Buch, co-founder and managing partner of Caple, said: “Successful and growing businesses such as Grayson and Spinnaker need funding that matches their size and ambition.

“But options for genuinely unsecured debt, requiring no personal guarantees or security, are limited in the UK.

“In an asset-light economy such as the UK, this creates a barrier to growth and may push businesses to issue equity instead of raising debt.

“Our deals prove the appetite among UK SMEs for unsecured loans alongside bank lending to fund growth. Given the benefits of this blended financing approach, we anticipate doing a lot more.”

The company originates loans through a local partner network of accountancy and business advisory firms. As a result, Caple supports a blend of financing that delivers long-term growth funding and best suits the SME.

Stuart Hateley, managing director of Grayson, said: “We were impressed with Caple. The firm was prepared to back our management team and securing this funding feels like a vote of confidence in what we are doing.”

Birmingham-based Grayson traditionally designs, manufactures and supports a wide range of engine cooling, heating, ventilation and air conditioning systems. It exports to more than 50 countries worldwide.

The loans Caple facilitates are part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform.

This is said to enable SMEs to access funding from institutional investors. BNP Paribas Asset Management aims to provide €1bn per year in funding to SMEs across Europe and €400m in the UK.

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