Secure Trust Bank's Commercial Finance division has provided more than £70m in funding to private equity-backed businesses in 2020.
Despite the challenges faced across the sector in 2020, this figure reinforces Secure Trust Bank's continued appetite to write new business and support existing clients. Of the £70m of new facilities provided, £20m related to CBILS and CLBILS support provided to existing PE-backed clients.
Key transactions across the country included a £7m asset-based lending facility for Moda Furnishings, completed in October. The high-quality garden furniture provider, backed by Endless LLP, required funding to increase inventory and support cashflow, allowing the business to meet demand from its online shop and continue to expand.
Secure Trust Bank also provided a £5m working capital facility to support Rcapital's December acquisition of local newspaper publisher Archant. The deal, which was approved in just one week thanks to the bank's unique credit committee, has provided the Norwich-based business with greater stability across its 140 local, regional and national brands.
The commercial finance arm of the listed bank provides a full suite of asset-based lending options including invoice financing, working capital and inventory financing. Based across a network of regional offices, Secure Trust Bank Commercial Finance has senior decision makers on the ground in all corners of the UK, managing smaller portfolios to ensure they can deliver bespoke funding packages.
John Bevan, managing director at Secure Trust Bank Commercial Finance, said: "We have strong, long-standing relationships with many of the PE houses we have supported this year, and we're always happy to work flexibly and move quickly to support them in the acquisition of new businesses and provide funding that allow businesses within their portfolio to continue on their growth trajectories.
"Towards the end of 2020 the sector saw more PE businesses looking for well-managed, robust businesses looking to grow and we look forward to supporting many more of these businesses and their PE backers in the coming year."