Caple, the alternative SME credit specialist, has announced two eight-year, fully unsecured loans for two UK SMEs.
Grayson Thermal Systems (Grayson), supplier to the automotive market has received £2m loan and Spinnaker International Ltd (Spinnaker), manufacturer of cash protection boxes and asset tracking technology, £3m.
Grayson, based in Birmingham, traditionally designs, manufactures and supports a wide range of engine cooling, heating, ventilation and air conditioning systems. It is a leading supplier to the bus and coach, specialist and commercial vehicle markets. It exports to more than 50 countries worldwide. In recent years it has launched a range of e mobility thermal arrangement products.
Grayson intends to use the loan to accelerate investment in product development and establish a new production facility.
Spinnaker, based in Cornwall, designs multiple asset protection technology products for the cash-in-transit, banking and retail markets and exports to more than 40 markets worldwide and has employees in 14 countries.
It is expanding rapidly as a result of its focus on product development and it will use the loan to increase its presence in new geographical markets. The firm will also invest in research and development, through new innovation centre. The company expects to create a further 15 to 20 jobs as a result of its growth plans.
Dominic Buch (pictured) co-founder and managing partner of Caple, said: “Successful and growing businesses such as Grayson and Spinnaker need funding that matches their size and ambition. But options for genuinely unsecured debt, requiring no personal guarantees or security, are limited in the UK.
“In an asset-light economy such as the UK, this creates a barrier to growth and may push businesses to issue equity instead of raising debt. Our deals prove the appetite among UK SMEs for unsecured loans alongside bank lending to fund growth. Given the benefits of this blended financing approach, we anticipate doing a lot more.”
Stuart Hateley, managing director of Grayson, said: “We were impressed with Caple. The firm was prepared to back our management team and securing this funding feels like a vote of confidence in what we are doing.”
Tony Westington, managing director of Spinnaker, said: “As a fast-moving technology business, we wanted a loan that would enable us to fund growth without having to give up ownership or control of the business. Caple has enabled us to do this.”
Colin Burns from corporate finance firm Shaw & Co advised Spinnaker. Caple worked alongside RBS in the Grayson deal and Lloyds Bank in the Spinnaker deal.
Caple has to date lent seven SMEs a total of £16.7m. The company has a further £80m in its deal pipeline. It offers unsecured lending based on the future cash flows of the SME. The business requires no collateral or personal guarantees as security.