Privately-funded, Convertibill’s core strategy since it was established in 2013 was to provide practical solutions for growing SME companies that have increasing difficulty in accessing traditional lending including bank loans.
For many businesses, Covid-19 has exasperated the challenges of funding growth, with traditional lenders growing ever more cautious in recent weeks.
Those companies that received funding from Convertibill include two deals totalling €3.9m for distributors of hand sanitiser utilising its trade and invoice finance products as Ireland battled the pandemic.
A brief snapshot of some of Convertibill’s funding in March and April 2020 provides perspective on the wide-ranging businesses financing for growth during the crisis including food & drinks, agribusiness, pharmaceuticals, retail and renewable energy:
- £4m for heavy plant equipment based on an asset finance
- €1.9m for soaps and hand sanitisers using invoice finance
- €600k for a drinks company with trade finance
- €2m hand sanitisers and body lotions company with trade finance
- £3m aluminum foil distributor through trade finance and invoice finance
- €200k insurance personal injury claims with funding based on future cashflow
- €600k animal feed distributor accessed via trade and invoice finance
- £2.1m anaerobic digester equipment using asset finance and future cashflow
Harry Parkinson, Managing Director of Convertibill said: “While traditional lending options have been strained for businesses for many years, the Covid -19 pandemic has undoubtedly compounded the issue for many small and medium companies. As the entire economy faces an unpredictable and challenging time ahead, traditional doors are being closed. But the most resourceful businesses can take advantage of excellent options available to fund growth in the alternative finance market and the £22m that we have secured in recent weeks is really only the tip of the iceberg. Currently, we are actively supporting a significant number of businesses across Ireland and UK, financing their business potential with our suite of funding options that can be engineered to drive growth across a broad range of sectors and scenarios.
“While the Irish and UK governments have sought to strengthen support measures for businesses hit hard by the Covid-19 crisis, existing efforts have proven well-intentioned but insufficient in practice to assist the SME sector. Convertibill’s £22m funding comes as many commercial banks are reassessing risks and reducing their lending options.”
Convertibill’s platform is suitable for all organisations requiring working capital from established businesses in manufacturing, distribution, pharmaceuticals, services, retail to start-ups such as those in IT and fin tech. Typically, its Credebt funding ranges from £100k up to £10m with most decisions reached within 2-3 days and quick access to cash enabling businesses to maximise time-sensitive opportunities. While headquartered in Dublin, Convertibill has strong regional network of staff and partners across Ireland and the UK to provide advice on funding opportunities to businesses locally across every region.
Parkinson added: “Businesses are under increasing cashflow pressures at the moment and we are seeing the traditional financial institutions taking an increasingly cautious approach, despite what may be being said publicly. At such a critical time for the economy, we want to do all we can to help companies not only survive but to thrive by providing access to finance when they need it most and above all, when time is of the essence.”
For more information, visit www.convertibill.com
Harry Parkinson of Convertibill
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