SME funding needs to allow businesses to not just survive, but to thrive and achieve their full potential.
An increasing number of SMEs are now looking to what the alternative lending market can offer their business, rather than the traditional lending channels they may have used in the past.
One such example of this is a business introduced to the Praetura Group recently: a precision engineering company who felt their company’s growth plans were being hindered by restrictive funding currently being provided by a high-street lender.
Like many businesses across the country, the last couple of years had not been easy, with the pandemic affecting the industries they provided work for, in a variety of ways. This impacted costs, margins and cash flow. However, over recent months business was returning to pre-pandemic levels and they needed their funding channels to allow them to develop their business and increase their turnover, but were receiving limited support from their lender which was hampering the progression of those plans.
They needed a funding partner who would take the time to understand their business, the challenges they had faced, but also the wider picture of the potential for that business and offer funding that was flexible and supportive rather than constrictive.
Praetura offered more than money
What the business needed, was exactly what Praetura offered: time, understanding and then the expertise to put in place a combination of funding facilities to provide just what the company needed to be able to progress.
Praetura Invoice Finance (PIF) and Praetura Asset Finance (PAF) worked together to provide a dual solution; combining a £1.5m flexible invoice discounting facility, along with an asset refinance package totalling £324,400 which released equity from six pieces of specialised engineering equipment to reduce their monthly payments by c.£9,000 per month and provided a working capital injection of over £90,000.
Another bonus for the customer of working with the Praetura Group, is that a dual solution was arranged from a single source, with teams from PIF and PAF working collaboratively in the background to ensure everything was arranged and in place within the stipulated timeframes.
Carl Finlayson, Sales Director at Praetura Invoice Finance, said: “Many business owners might assume that business funding for significant amounts, such as the £1.8m facility we arranged for this client, would be time-consuming and complicated. But if you’re working with the right funder, this is not the case. At Praetura it’s our job to make the process as hassle-free and simple as possible, working with each business to offer the right funding for them, that takes into account more than just the immediate circumstances or requirements”.
Ric Simmons, Commercial Director at Praetura Asset Finance, added: “The funding a business has in place should never restrict a company’s opportunities for growth. One size doesn’t fit all and at Praetura through the four divisions in our lending division: Praetura Asset Finance, Praetura Invoice Finance, Praetura Commercial Finance and Kingsway Finance we have a wide range of options available that are both flexible and adaptable. Our more than money approach means each business gets our time, understanding and expertise, as well as funding that fits with their current situation and their plans and aspirations for the future”.
To find out more about the funding options available from Praetura’s Lending Division and the way the teams collaborate to provide appropriate solutions for SMEs, please don’t hesitate to get in touch by calling 0333 323 7800, emailing enquiries@praeturaaf.com or visiting the individual company websites:
Praetura Asset Finance: praeturaaf.com
Praetura Invoice Finance: praeturaif.com
Praetura Commercial Finance: praeturacf.com
Kingsway Finance: kingswayfinance.com
