Secured Cash Flow Funding

What is it?

Senior secured loans secured with debenture over the entire assets of the company with loan terms of between two and five years and amortisation profiles to fit the cashflows of the business and collateral backing the loan. Secured cash flow funding is provided by BMS Finance offices in London and Dublin.

Benefits for our Borrowers?

  • We are a relationship lender and believe in building a long-term relationship with the management teams we back;
  • Our experienced team make decisions quickly, benefiting from our funds having long-term committed capital and an in-house credit committee;
  • You can concentrate on growing your business whilst we meet your funding requirements;
  • We do not take personal guarantees or personal security.

What does it cost?

  • 2.0% arrangement fee payable on signing of the loan;
  • All legal fees payable by the borrower;
  • Fixed rate interest rates of 12% to 15% plus warrants or an exit fee.

What are the requirements?

  • We lend between £500,000 and £6,000,000 in the UK and €500,000 and €5,000,000 in the Republic of Ireland;
  • Businesses with strong, proven management teams;
  • Business must be based or have significant operations in the UK or the Republic of Ireland;
  • Companies in growth phase which have demonstrated sales traction and good growth prospects – we do not back pre-revenue businesses;
  • We will fund the working capital requirement associated with a growing company, the development of new customer propositions or markets or the acquisition of assets or companies;
  • At or imminent profitability;
  • Sector agnostic but we do not lend to property, property development or unethical companies.

How does it work?

  1. We have an initial meeting to understand your borrowing requirements and advise on our due diligence process for a loan application.
  2. We prepare an Internal Credit Assessment and a proposal document for our credit committee to review.
  3. We produce an indicative Offer Letter for you to sign with agreed conditions and payment structure.
  4. We complete due diligence with an in-depth review of your business and market.
  5. We monitor the ongoing performance of the loan through monthly management accounts and Board observer rights and manage the relationship from initial meeting to final repayment.