Increased demand for funding as confidence grows among business owners
The last hike in interest rates was back in August 2023 and inflation has fallen significantly since then, meaning the next move in rates will almost certainly be down. This has given many business owners the confidence to revisit their growth plans and how they intend to fund them either through debt or equity or both
Mike Hackett, Chief Commercial Officer at ThinCats
ThinCats’ owner-managed proposition
At ThinCats, we offer flexible funding solutions for profitable (with EBITDA >£1m) owner-managed businesses across the UK through our network of regional support offices. Local teams of experts deliver a funding solution that is fully tailored to the requirements of the mid-sized business. Every business is assessed on its individual merits, with no sector restrictions.
Funding of £1m - £15m can be arranged – typically within 4-6 weeks from enquiry to drawdown depending on the quality of information available – while flexible terms and revolving facilities allow business owners to seize opportunities, providing support when it is needed.
“Whether it’s for acquisitions, management buyouts, EOTs or capital restructuring, entrepreneurs gain access to committed capital to support their growth objectives,” explains Mike. “With funding released over time, it means they can really grow their business with confidence.”
Regional funding boost
In response to this strong demand, ThinCats has allocated an additional £300 million funding commitment to support the growth ambitions of owner managed businesses in the North West, Midlands, London & the South East, and Yorkshire & the North East.
“We’ve built up experienced regional teams across the UK over recent years, with many senior hires to origination, transaction management, and relationship management functions,” says Mike. “At the same time, brand awareness and momentum with local advisory firms has also gathered pace. We often find that once advisers use us once, further transactions follow shortly afterwards. Recent industry data from the likes of the British Business confirm that alternative lenders such as ThinCats, alongside the new challenger banks and private debt funds, have massively increased the funding options now available to ambitious, high growth businesses.”
How ThinCats helps owner-managed businesses thrive
With our support, business owners have secured funding despite one of the most challenging economic environments in recent memory. By looking at the individual circumstances of a business, we have been able to structure funding solutions specific to their needs. As business confidence picks up we expect demand to increase further from here.
For Alfred Cheyne, founder of Ace Winches, it was about taking back full control of his business.
His engineering firm was initially a supplier to the fishing industry in Aberdeenshire but had grown to be a global leader in the design, manufacture and hire of lifting and pulling equipment to the oil and gas industry, and the offshore sector. Our funding enabled Cheyne to repurchase shares. He later sold the company to Ashtead Technology, a subsea equipment rental specialist, for £53.5m.
ThinCats’ funding for Hertfordshire-based next generation technology and managed services provider Croft Communications enabled the company to take advantage of a fragmented market and realise an ambitious ‘buy and build’ plan. Following a successful MBO in 2019, shareholders Ben Page (Founder), Mark Bramley (CEO) and Phil Waters (CFO) used transitional capital to acquire 22 businesses in four years and quintuple the company’s value.
Meanwhile, for Warwick-based professional services firm Skewb, organic expansion was the goal. The business wanted to take advantage of a strong market position by investing in people and technology, developing new products, and exploring potential new markets. ThinCat’s flexible funding allowed Skewb to hone its offering by grasping market opportunities. It cemented its position as an expert service and digital product partner to the utility and power market, complementing its strong business expertise with a suite of proprietary digital software products.
“I’m proud that we’ve been able to support so many different mid-sized firms in achieving their ambitious growth aspirations,” says Mike. “We’re committed to helping many more.”
