Credit where it’s due:Why SMEs turn to Credit Asset Management

For most businesses, realising their goals and ambitions depends on securing capital for investment at critical points in their journey. Machinery, premises, software, transport, the list of typical assets is long, and a company’s success can hinge on acquiring just one. 

Unfortunately, banks – the first port of call for many hopeful business owners – are far from a guaranteed source of the credit needed to make the big purchases. As decision-making tends to rely more on computer algorithms, should these algorithms glean insufficient criteria points – combined with longer decision making cycles and too much security – denial is abrupt and rarely negotiable. 

Credit Asset Management works differently. Applications are scrutinised by real people who look for the story behind the application and can see the value in a customer that a set of computer protocols simply can’t. Moreover, credit asset don’t just work to release credit to a customer, they build relationships that run much deeper. As well as finding ways to release credit, they build repayment plans aligned to the customer’s business model to ensure that maximum value for money is achieved from investments.

The beauty of Credit Asset and the people-focused approach is understanding the value of assets and the impact these have on business; the impact it can have to help cashflow and profitability, and the delivery of greater efficiency via the new asset. We understand exactly what that asset is worth, both its intrinsic value but also its collateral value, using our asset knowledge to loan it. 

Indeed, many SMEs who turns to credit asset management , having been frustrated by a  bank, often come to view the rejection as something of a blessing in disguise. Not only are rates competitive, repayment plans bespoke, but they acquire a business relationship that helps them achieve in ways they didn’t think possible. 

Here, we look at two businesses who came to CAML seeking capital and received much more than just a transfer of funds. For various reasons, we have had to anonymise both companies. 

Digital Signage Company

This company sold and hired out LED signage to a variety of different customers, both private and commercial. They had decided they wanted to increase their operations to provide large-scale signage to professional sports teams which could be used either as scoreboards or for advertising. 

The company was successful in agreeing a contract with a Premier League football club. CAML provided a back to back lease agreement to the customer which allowed them to deliver their product and services to the Premier League club in a seamless fashion.

Speaking of their experience with CAML, the company’s CEO said, “The deal with the Premier League club was a milestone for our company. It represented our biggest commercial achievement so it was vital that everything went smoothly, or else it could have been our last. The back to back lease agreement provided us both the signage we wanted and a lump sum to invest in other hardware. We now have one happy Premier League client on our books and CAML are a major reason for this.”

Compressed Gases Provider

A supplier of cellar gas to the pub industry, this company sought funding for important hydraulic testing equipment. The customer had already identified the equipment and supplier they wanted to use, the sticking point being that the supplier was based overseas.

To initially secure the purchase, CAML provided the customer with a short term loan facility, giving freedom and flexibility to negotiate as a cash buyer, to allow them to acquire and import the equipment. In order to spread the cost for manegablel amount and cashflow, So that the company could invest in other areas of the business following the acquisition of the testing equipment, CAML then offered the customer a Sale & Leaseback facility which allowed them to sell the imported equipment back to CAML and lease it over a longer term, enabled them to spread the cost for cashflow.

The company’s founder said, “Initially, we were so relieved that CAML were able to provide us with the short-term loan to buy the equipment. It is a critical asset to a business like ours. However, it was the Sale & Leaseback facility that really amazed us. Not only did we now have vital equipment that many of our prospective clients enquire about, able to spread costs over the term to suit our budget, which we could use to invest in other areas of the business. It’s far from an exaggeration to say that CAML have been a major reason for our subsequent growth.”