Membership news

Reward boosts Yorkshireʼs SMEs with £50m

Reward Finance Group has helped boost the Yorkshire economy in the last 12 months by providing over 140 SMEs with an additional £50 million of funding to enable them to unlock growth potential, create new jobs or help them navigate through a difficult trading period.

The NACFB Patron attributes this success to its straightforward and flexible lending products, speed of delivery, and the confidence of an increasing number of companies to build their businesses post-pandemic. Gemma Wright, Reward’s managing director for Yorkshire and the North East, said: “As a business based in the region, it is particularly pleasing to fund the ambitions of SMEs across Yorkshire.”

Among the SMEs in Yorkshire benefitting from Reward’s support in the last 12 months is a garden centre in Harrogate which received a working capital injection of £1.3 million to build a 20,000 square foot food hall, incorporating a 160-seat restaurant, and creating 60 jobs.

The NACFB also supported a property business which secured £270,000 to purchase a 13,487 square foot freehold building in Halifax which it is separating into seven small industrial units for start-up businesses.

Reward has grown along with the SMEs it funds. In the last year the NACFB Patron opened three further regional offices.

Metro Bank launches ABL proposition

Metro Bank has announced the launch of a new asset-based lending (ABL) proposition. The NACFB Patron will provide lending facilities of £2 million and up against a wide range of assets including debtors, stock, plant and machinery in addition to commercial property.

The new offering is available to both existing and new-to-bank customers. Asset-based lending can be used for a number of business needs including refinancing of existing loans, growth both organically and via acquisitions, as well as transactional opportunities such as management buy-ins and buy-outs.

Commenting on the announcement, Alan Austin, head of asset-based lending, said: “Metro Bank’s focus will be on providing truly bespoke lending solutions that are tailored to each and every customer. We’re looking forward to supporting many more businesses in the years ahead.”

Kevin Craven, director of invoice finance said that the new proposition would allow the Bank to offer even more choice to businesses. Metro Bank’s lending options currently include cashflow loans, revolving credit facilities and overdrafts.

The NACFB Patron is currently rated as the number one high street bank for overall service quality and service in stores for business customers according to the Competition and Market Authority’s February 2022 rankings.

Membership News

Funding for pet industry SMEs grows 94% over last two years

365 Business Finance has highlighted the UK’s rapidly growing pet industry, reporting a 94% increase in funding for pet retail outlets throughout 2020 and 2021 compared to 2018 and 2019.

According to the NACFB Patron the latest data also shows a 74% increase in funding for veterinary practices throughout 2020 and 2021, when compared to the previous two years.

As a reflection of the high demand for pets, pet supplies and grooming services during the COVID-19 pandemic and lockdowns, this significant jump in the amount funded to pet related businesses is not just a temporary trend.

2022 is already proving to be yet another strong year for both the pet retail and veterinary industries, indicating that the knock-on effects of the pandemic and pet ownership are not slowing down anytime soon.

Managing director, Andrew Raphaely, said: “The continued growth of the pet industry is an indication of how new working from home practices have allowed some individuals to adapt their lifestyles, achieving a better work life balance in many instances and, in particular, being able to welcome dogs and cats into the family.”

In January the team at 365 Business Finance showcased their beloved team pets for Walk Your Dog awareness week.

Record-breaking performance for Selina Business

Selina Business has reported a record-breaking performance for Q1 2022, more than doubling the total sum lent to businesses in the final quarter of last year. The NACFB Patron has also seen a twofold increase in the total number of case submissions for business credit facilities from its broker channel compared to Q4 2021.

All loans were provided to growing businesses, some of which were used to refinance existing facilities — particularly unsecured finance and CBILS loans which were outside of the interest-free period.

The largest deal of the period was a £871,500 loan — agreed at 75% LTV over a 24-year term — for a nursery business, which required funds to invest and expand.

Commenting, Josh White, business lending lead said: “We have seen more business owners wanting to reduce their cost of capital after loading themselves with expensive unsecured finance and seeing their CBILS loans starting to require repayment.”

Selina Business relaunched its business credit facility product in July 2021, with an increased focus on limited company lending.

Josh said that the focus for the NACFB Patron in the second quarter would be to improve the broker and client experience through the introduction of technology to further speed up its underwriting processes.