Christopher Jones, in Wright Hassall's Banking & Finance team, has advised Hadrian’s Wall Secured Investments Limited (HWSIL), a specialised investment fund, on its £16.3m financing facility for Fleximize, the UK’s first revenue-based finance provider.
The initial round of funding will allow Fleximize to substantially increase its lending capacity, and propel it towards its goal of lending over £100 million to SMEs by 2019. It will also help the company further develop and diversify its product offering, and continue to deliver its mission of first-class customer service by advancing its proprietary technology platform with the introduction of dedicated areas for brokers and direct clients.
Between 2015 and 2016, Fleximize grew its lending to SMEs by 132% to £40 million, a figure that the company is looking to double in 2017 as it rolls out its new secured loan product. Companies can now borrow up to £250,000 from Fleximize on an unsecured basis, and up to £500,000 on a secured basis.
Peter Tuvey, co-founder and managing partner of Fleximize, said: “The chancellor described SMEs as the lifeblood of the UK economy in his spring budget, and we witness that every single day here at Fleximize. From Shelley Dickinson, owner of the award-winning Shelley’s Pie and Mash Shop, to Polly Thompson, managing director of bespoke bridesmaid dress retailer, Nabbd, our clients are representative of the hands-on, hardworking and dedicated entrepreneurs that are driving the UK forward.”
Peter added: “It’s been an incredibly positive start to 2017 for Fleximize, with our lending to SMEs in all sectors growing at a substantial rate. It has been a pleasure working with Hadrian’s Wall Capital. We’ve valued their proactive and fast-paced approach to supporting us. “
Marc Bajer, chief executive at Hadrian’s Wall Capital, investment adviser to HWSIL, said: “We’ve been impressed by Fleximize’s growth over the past three years. It is rare to find such a focused and technology-enabled lender in the SME alternative finance sector. We were impressed with the commitment to transparency with its customers. We look forward to working closely with Peter and the team, and supporting the company on the next stage of its exciting journey.”
Law firm Wright Hassall acted for HWSIL on the deal. Christopher Jones, senior associate who led the transaction for Wright Hassall, said:
“We are delighted to have acted again for HWSIL on another major financing. This transaction has once again required us to advise on and document an innovative, complex legal structure that will allow HWSIL to make available to Fleximize such a significant facility."
It is rare to find such a focused and technology-enabled lender in the SME alternative finance sector. We were impressed with the commitment to transparency with its customers.
About Hadrian’s Wall Capital Limited
Hadrian’s Wall Capital Limited is a private limited company incorporated in England with a registered number 07203454 and is authorised and regulated by the FCA.
Fleximize is a UK-based direct funding company and web platform launched in January 2014. Our mission is to help small and medium-sized British businesses grow by providing them with flexible financing solutions tailored to their unique needs and preferences. We are striving to provide our clients with experience and service traditionally available only to larger corporates. Our dedicated relationship managers will guide and support clients from the moment they apply – no bouncing from person to person or waiting for hours on hold.
Fleximize’s innovative Revenue Advance provides clients with flexible funding that they repay at the pace of their business. There are no fixed interest or capital repayments every month. Instead, they pay a percentage of their revenue until an agreed amount is repaid. Clients can use the money to purchase inventory, upgrade their premises or website, hire more staff, and otherwise improve and grow their businesses without worrying that a temporary slowdown in sales could put them in financial trouble.