Author: katharine

Credit Asset – helping SMEs on their growth journey

A curious trend amongst many businesses today, is an increasing apparent contentment with constancy over growth. For some, having built their business to a manageable size, the perceived pressures of growth are deemed “not worth it” for how it may impact on private lives. For others, current economic uncertainty deters against possible expansion, and others still, the prospect of taking on debt is one reasoned to be just too laden with risk. 

Of course, there are other reasons businesses are happy to maintain the status quo but whatever the reasons are, if too many abandon growth ventures, potential goes unrealised. Moreover, the general economic knock-on effect for the country is far from ideal. 

Key to tackling this recalcitrance to growth is a proactiveness amongst lenders to change the perception of debt as a concept and help businesses see that lending products consist of much more than just a transfer of interest-affixed capital. They can do this in a number of ways…

Demonstrate how debt can be less expensive than equity investment

Investing equity invariably necessitates a temporary relinquishment of part of the business and forgoing current and future value to satisfy the longer-term need. The full cost of equity investment is often unclear at the point of purchase and the process more complex.

A competent lender, however, clarifies cost of debt at the point of purchase and should these costs be manageable for your business, the advantage of not having to surrender control of part of the company can be significant.

Business consultation and advice appended to capital transfer

Specialist lenders, such as credit asset, in particular, usually take a collaborative approach to repayments. They know that full recovery of funds hinge on the success of business ventures and, such is the niche space they operate in, they are also especially keen to acquire repeat custom. 

To achieve both, transfer of capital is typically accompanied by expert consultation for purchases, strategy and repayment options. In essence, this means that businesses get a ‘2-for-1’; capital with which to purchase inventory and consultation that would otherwise command hefty day rates.

Improve financial discipline and credit score

Well managed debt and the making of regular, on-time payments, increases a business’ credit score. The upshot of a better credit score is a rise in overall spending limit and lower future interest rates, both of which allow business leaders to allocate their financial resources more efficiently. Though this alone is not a reason for businesses to take on debt, it is certainly a positive consequence.

Debt is not always the best option for financing a business venture or change in direction, and it would be disingenuous to say that it is. However, if debt is the avenue to be explored, and it is approached in the right way, it can be a powerful strategic tool for growth and can be a cheaper financing option than other alternatives.  In today’s competitive environment, it is always prudent to research sources of finance and choose one that aligns most closely with your needs.

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A chip off the old block: funding in the spotlight


A leading UK family-owned wood processing and recycling company in the North of England approached CAML for support in meeting their ambitious plans for expansion. The business had built an enviable reputation within their sector, supplying wood chip products to national retailers over a period spanning more than 40 years. 

Their services had focused on providing recycled wood materials for the panel board industry and for use in animal bedding. However, they recently spotted an opportunity to supply a major, multi-national energy supplier with a specialist wood product for use in their biomass plant. In order to process waste wood and convert it into the specific type of woodchip the biomass plant used, the wood recycling company needed to acquire an industrial Wood Chip Boiler.


CAML chip in

In order to obtain the Wood Chip Boiler, the wood recycling company needed a financial injection of several hundred thousand pounds. Taking the view that this  type of  transaction should be deemed a ‘hard asset’ lend and thus providing good collateral value, CAML were able to take comfort in this crucial factor when making their decision to approve the lease. 

After a short consultation period, the lease was arranged with a bespoke repayment plan agreed over a 36-month period to include the ancillary equipment being purchased. In addition the supplier was paid using CAML’s Payment Before Delivery solution. The wood recycling company were very much involved in the consultation, and the deposit and monthly repayments were designed to ensure business operations could continue to run smoothly during the duration of the lease. 


A new, CAML-powered business dimension

With the acquisition and installation of the Wood Chip Boiler complete, the wood recycling company emerged as a freshly diverse entity. Still supplying their existing customers with high-quality recycled wood products, they now provide one of the world’s leading energy companies with the unique wood-based fuel required to power their biomass plant. 

Their story is one which encapsulates what CAML is all about. Speaking to companies as equals, exploring how we can support them in their growth journey, and providing capital attached to bespoke repayment plans to help them realise goals and ambitions. 

If you have projects that require structuring expertise and input from a credit team with an appetite to help, please call 0203 795 2680 to speak to one of our specialists today. 

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Lending spotlight: sale and leaseback

For a whole host of reasons, we know traditional loans aren’t always an option. So when you’re working with an ambitious organisation with a sound business plan, it’s important to know that alternatives are available.   

A supplier of cellar gas to the pub industry sought to invest in new equipment that would support current operations but also release opportunities in other areas of the organisation. However, with the identified supplier being based overseas a funding challenge was posed.  

Sale. Leaseback. Invest. Grow.

In order to secure the purchase, CAML was able to provide a short-term loan facility, allowing freedom and flexibility to negotiate as a cash buyer, acquire and import the equipment. 

In order to then spread the cost into manageable payments and to support cashflow, CAML went on to offer the customer a Sale and Leaseback facility. Allowing them to sell the imported equipment  to CAML and lease it back over a much longer term, which reflected the asset’s predicted lifecycle and payments were supported by projected cashflows.  

Compressed Gases Provider

Lending spotlight: Sale and Leaseback 

“Initially, we were so relieved 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 this has been a major reason for our subsequent growth.”
Founder of organisation

For more information on our lending options please click here or call 0203 795 2680 to speak to one of our specialists today. 

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Master Lease: Funding in the spotlight

Funding spotlight: Solutions for Suppliers – Master Lease

The Credit Asset Management team was approached by a supporting broker who had a key supplier with a large, long-term project which was potentially going to cause them cashflow constraints on installation. 

The supplier’s client was an international logistics company with a number of sites across the UK and sought funding to undertake a security upgrade on entry and surveillance equipment across its various locations in the UK. 

Large scale technology upgrades are notoriously complicated and can take time to deliver and fully implement. Add in multiple suppliers and without warning such projects can often present a challenge when managing payments to third parties and business cashflow. 

The conundrum for the supplier was how to deliver on one of its largest contracts without it causing a detrimental impact on the rest of its business. 

While seen as a major upgrade for the company, the installation of equipment was scheduled to take place at intervals over a 12-month period. In order to satisfy the agility of the company and help it meet its roadmap for upgrade, CAML provided the customer with a million-pound Master Lease facility for utilisation over one year.

The broker had dealt with the supplier for a number of years, and the logistics company was able to show a strong operating model, with solid financial performance and a perfect repayment history on previous funding facilities. 

A Master Lease facility allowed the customer to draw down the required amount for each site when appropriate. This ensured that they were able to manage payments to the supplier when they were satisfied the assets were in order. Crucially, it also allowed the equipment supplier to be paid at regular intervals during the roll out of works, as opposed to having to wait for the final installation to take place before receiving full payment. 

The client said: “The master lease was a great option to support us with this major upgrade project. It provided us with one master set of terms for the whole project, enabled us to manage the entire end-to-end process alongside our upgrade path, while also smoothing over cash flow.”

Give CAML a call today to see if a Master Lease could help either your suppliers or clients 

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