3 borrower case studies 2016
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The document discusses crowdlending as a viable alternative to traditional bank loans, showcasing its growth and flexibility in addressing the needs of small businesses. It highlights three specific case studies that illustrate how crowdlending has provided tailored financial solutions to different businesses, emphasizing the direct access to credit analysts and quicker decision-making processes. Overall, the document underscores the market's increasing acceptance of crowdlending as a sustainable financing option.
![fundingknight.comfundingknight.com10
• LTV against market value instead of purchase
price
• Multiproduct solution: A combination of property
bridging and business loans enabled us to
finance the total amount
Leigh Mackey, Managing Director at Inspire,
commented,
“The process was simple. Gary was very forward
thinking and commercially minded and could see
what we were trying to achieve from the start. I
would certainly use [FundingKnight] again.”
Case study 2: Inspire
Insurance](https://image.slidesharecdn.com/3borrowercasestudies2016forslideshare-160601093007/85/3-borrower-case-studies-2016-10-320.jpg)
3 borrower case studies 2016
- 1. fundingknight.comfundingknight.com1 Crowdlending for growth: 3 borrower storiesJasper Ehrhardt, Managing Director First presented at Accountex 2016
- 2. fundingknight.comfundingknight.com2 What is crowdlending? • Direct transactions between investors willing to lend money and borrowers seeking loans • Platform manages introductions, credit assessment & money transfer • No equity changes hands
- 3. fundingknight.comfundingknight.com3 Not just a flash in the pan Sources: Liberum AltFi Index Pushing Boundaries: 2015 UK Alternative Finance Report, Nesta “Future trends in UK banking: Analysis and projections. A Cebr report for Fiserv” Small business lending 2015 Crowdlending: 13.9% £6.34b n Crowdlending’s continued upward trajectory shows it has a real place in the market and contradicts suggestions it’s just a gimmick
- 4. fundingknight.comfundingknight.com4 What makes crowdlending different? • Applications assessed on a range of information, not just credit checks, including expertise and competence of key staff • Not subject to the same constraints as banks • Speed and flexibility • Lending decisions are made “on the ground” by the credit team • Willingness to lend
- 5. fundingknight.comfundingknight.com5 Case study 1: LeisureBench • Garden furniture wholesaler • Less than 10 staff • Heavily seasonal sales • Large stock orders, typically over winter, tying up funds • No bricks-and-mortar In conclusion: Not the sort of profile to interest a bank
- 6. fundingknight.comfundingknight.com6 Case study 1: LeisureBench • Garden furniture wholesaler • Less than 10 staff • Heavily seasonal sales • Large stock orders, typically over winter, tying up funds • No bricks-and-mortar In conclusion: Not the sort of profile to interest a bank Our perspective: • Established (since 2004) • In profit • Demonstrable ability to manage cash, even across seasonal variance • Well managed • Good business plan Overall: credit team had confidence in the borrower
- 7. fundingknight.comfundingknight.com7 Our solution • Loans are ideal to smooth out irregular cashflow • Secured against personal guarantees from directors • Payment holiday included at the start of the term • Loan was repaid early with no penalties • Borrower has recently returned for their fifth loan from FundingKnight
- 8. fundingknight.comfundingknight.com88 Flexibility • SMEs do not suit a “one size fits all” approach • Three product types • Repayment terms: amortising, interest- only, interest roll-up, repayment holidays • Secured and unsecured • Forward-looking credit assessment
- 9. fundingknight.comfundingknight.com9 Case study 2: Inspire Insurance • Insurance brokers established in 2010 • Outgrew their premises • Keen to make a long term investment by buying the next property • Identified ideal property on the market at a great price & in need of bridging finance to move quickly • A previous offer at another P2P platform had fallen through when the community had failed to raise sufficient finance to cover the loan • BUT loan amount above FundingKnight’s bridging LTV
- 10. fundingknight.comfundingknight.com10 • LTV against market value instead of purchase price • Multiproduct solution: A combination of property bridging and business loans enabled us to finance the total amount Leigh Mackey, Managing Director at Inspire, commented, “The process was simple. Gary was very forward thinking and commercially minded and could see what we were trying to achieve from the start. I would certainly use [FundingKnight] again.” Case study 2: Inspire Insurance
- 11. fundingknight.comfundingknight.com11 Speed • Speed of delivery is often critical for businesses • P2Ps are small companies themselves – the chain of decision making and approval is short • Assessment and decision process is clear and transparent • Direct access to credit analysts, not just sales people
- 12. fundingknight.com12 Case study 3: Silent Sentinel • Leading designer, manufacturer and supplier of advanced surveillance and security systems • Evolved from OEM manufacturer into market-leading developers of innovative custom solutions • Ongoing organisation-wide change to support growth
- 13. fundingknight.comfundingknight.com13 • 3 loans provided over 3 years: • Working capital • Product development • Expansion overseas • Supporting companies throughout their growth • 8 days from application to auction • All auctions are filled within 7 days • Paperwork is completed up front so funds can be transferred on day of close Case study 3: Silent Sentinel
- 14. fundingknight.com14 At a glance FundingKnight £30m Loans originated 100% Year on year growth Business loans | Property Bridging | Green Energy Product range Sources: altfi P2P business lenders index “Future trends in UK banking: Analysis and projections. A Cebr report for Fiserv” £100m 2012 £2.2b n 2015 £20bn? 2020 UK crowdlending to business
- 15. fundingknight.com Green EnergyBusiness loansProperty Bridging www.fundingknight.com