VENTURE DEBT
Realise your next milestone
Capacity: Access £500k to £25m cash injection towards various growth objectives.
Control: As founder, you dictate the future of your business as the primary stakeholder.
Flexibility: Repayment options in-line with your cash flow model.
Business Friendly: Avoid the pressures of personal assets as collateral.
Product Guide Contact us
We support young and impact-driven businesses with innovative lending solutions without comprising their equity
Venture debt explained
Venture debt is an innovative credit facility built for young high-growth driven businesses enough to have outgrown angel investors but not established enough to easily access bank lending. If this fits your profile, Funding Smiths can bridge this gap by facilitating a bespoke debt solution designed to help you scale. We help protect your equity as founders, provide a lower cost of capital and deliver funds fast.
We support businesses with:
Minimum turnover of £1m+
Experienced management teams
Well planned growth strategies in place
Prove predictable revenue over the next 18-24 months
Success case study
Sector: Online printing business
Turnover: £16.1m
Solution: £2m term loan secured against online payment platforms
Shivan Raithatha | Head of Finance, Mixam UK Ltd | https://mixam.co.uk/
‘’Funding Smiths have proven to add great value to our future growth plans. Jonathan in particular took the time to understand our business model and commercial objectives to evaluate the most appropriate credit line. He came up with a solution to leverage our online payment platforms (i.e. namely, AmazonPay, Stripe and PayPal) enabling us to secure senior level debt for our expansion in the US. His ability to think outside the box and structure a facility tailored for our business impressed me. We look forward to working with him again.’’
Mustafa Omar
New Business Director, Metro Bank
‘’FundingSmiths continue to demonstrate a strong commercial acumen having worked together on numerous occasions to date. The ability to absorb information quickly and deliver lending proposals very clearly makes the team a valuable asset for any growth-driven business.’’
Why venture debt?
Finance ongoing projects
FundingSmiths support scale-up businesses who continuously invest heavily towards the development of goods / services which can be capital intensive and technically demanding. If you’re in a similar position, Funding Smiths can help you leverage your current and future business performance to help you raise a growth-driven debt facility.
Execute acquisition plans
If you’re at a pre-profit stage in your business, FundingSmiths can help facilitate a debt facility in support of your acquisition plans. Provided your revenue is predictable and repeatable over the next 18-24 months, we can help support the growth of your market share.
Get funded faster
Customer expectations never stand still. Businesses need to keep up with seasonal demand and ever-changing consumer trends. This makes the delivery of funding highly time-sensitive for businesses looking to take advantage of opportunities. The good news is, FundingSmiths can help facilitate venture debts far more quicker without compromising your equity.
Let’s Talk
The future continues to evolve by small businesses that shape it. We match this by pushing the boundaries of commercial finance to help facilitate flexible and forward-thinking lending solutions. So, if you’re a serial entrepreneur, a tech based firm or a family run company, we’d love to hear from you.
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Product Guide
In contrast to equity based capital or bank debt, venture debt is aimed at early stage businesses achieving high growth by providing a lower cost of capital, protecting the equity of founders and delivering funds at a faster pace.
As many scale-up businesses are likely to burn cash faster at the early stages of their life cycle, they’re inevitably loss-making in the short to medium term and can find themselves in between funding rounds from investors. This can make their lending requirements complex for a traditional lender to support.
FundingSmiths bridges this gap by helping secure a bespoke venture debt solution designed to help businesses stay on-track of their growth objectives, without diluting founders shares.
| Eligibility | We look for:
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| Sectors | Open to a diverse range of businesses |
| Geography | Businesses headquartered in UK and Ireland |
| Term | 24 to 60 months |
| Credit Line | £500k to £25m |
| Rate | Ranging from 6 – 15% based on business risk profile |
| Lending structure |
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| Purpose of funds | Some examples may include:
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| Security | Forms of security include:
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N.B. This document does not constitute a recommendation or advice in relation to any nan- cial product. We believe that the information and analysis provided is accurate, but do not guarantee that this is so. Any opinions expressed are the opinions of Funding Smiths. We accept no liability for any loss or damage incurred through your use of this document.
What makes a good case?
- Viable business model
- Minimum turnover of £1.5m
- Experienced management teams
- Well planned growth strategies in place
- Prove revenue can be contracted, predictable and repeatable
- Can demonstrate revenue run-rate of £1m minimum, for the next 18-24 months
