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Shawbrook\u2019s head of asset-based lending, Oliver Wilson, explains how his team\u2019s flexible approach, emphasis on communication and growth mindset are delivering for a range of UK SMEs.<\/strong><\/p>\n

Shawbrook<\/a>, an established specialist in SME finance, continues to evolve its proposition, including the\u00a0 launch of a new \u201cdedicated asset-based lending (ABL) team\u201d, says Oliver Wilson, the firm\u2019s head of asset-based lending. ABL, he explains, is a growth area for the business with key interest from SME clients due to its flexibility and emphasis on growth.<\/p>\n

Long associated with working capital, the ABL proposition has evolved significantly at Shawbrook to provide not just cashflow headroom but also the firepower to fund strategic investments.<\/p>\n

By looking at a company\u2019s assets, whether stock, real estate, accounts receivables or more, Shawbrook can offer \u201ca level of flexibility and certainty\u201d that clients can\u2019t get with other types of debt structure. Furthermore, \u201cwhere profitability is growing, we can assess both the assets and the cash flows to come up with the most flexible debt structure\u201d, says Wilson.<\/p>\n

The client experience is also important when considering the right funder and the most flexible facility. \u201cOur dedicated ABL team has absolute focus and expertise in the markets we serve,\u201d he says. \u201cAs we continue to work with more complex requirements we need to ensure we have the right knowledge and experience in the team to provide the best service.\u201d This service includes a high \u201cability to understand the different types of assets and how suitable they are for collateral\u201d to create a facility that is flexible and beneficial to a client\u2019s growth prospect.<\/p>\n

For those still unsure about whether ABL is the right lending structure, Wilson makes crystal clear the benefits. Firstly, as the facility is designed to revolve, there\u2019s often more flexibility on capital repayments, which \u201ccan seriously reduce pressure on the cash flow of the borrower.\u201d\u00a0 ABL facilities can also \u201cgrow with the customer, expanding in-line with the growth of the business\u201d, and, crucially, quantum is \u201cbased on both the wider asset pool of the business as well as taking into account profitability,\u201d he says. \u201cThis more holistic approach often means businesses can access a larger amount of borrowing via ABL.\u201d<\/p>\n

Wilson goes on to explain that funders with the expertise to provide both ABL and leveraged finance within the same structure for the same client are few and far between, particularly outside of the US.\u00a0 But at Shawbrook, \u201cwe can provide both ABL and leveraged finance to the same customer during the same transaction, it\u2019s the best of both worlds and not many can combine this as we do.\u201d<\/p>\n

A recent example of this in action involved Goodfish Group, a leading provider of plastic injection moulding, assembly and extrusion manufacturing services.\u00a0 Goodfish approached Shawbrook, and their ABL team was able to construct\u00a0 a flexible ABL facility to support its acquisition of Schneider Electric\u2019s UK extrusion and assembly business in Flint, Wales, and to super-charge its working capital facilities for future growth. Not only did the multi-asset facility support the complex nature and timelines of the transaction, it also helped the firm expand its footprint and meet rising demand for its services in the building and construction sectors. \u201cBorrowing more in the right structure can support growth and profitability rather than being a drain on it,\u201d Wilson summarises.<\/p>\n

As Shawbrook is focused on helping clients with their growth journey, regular contact and good communication is key to a successful relationship. Managers run small portfolios of between twelve to fifteen clients only, so have stronger and more personal relationships with each management team, including regular ad hoc communication and face-to-face meetings quarterly as a minimum. \u201cI’ve sat in front of hundreds of SMEs,\u201d explains Wilson, \u201cand what\u2019s important to them when choosing a debt provider is they want flexibility, a solid and reliable relationship and certainty of delivery.\u201d<\/p>\n

When it comes to Wilson\u2019s ABL team, \u201ctechnical expertise and financial skill sets\u201d are a given. But what is arguably even more important to its success with clients are the soft skills, helping them to \u201clisten to what the customer wants, communicate effectively, manage the risk on our end and give them the best solution.\u201d With this dedicated approach in mind, they have moved on with team expansion with Wilson having recruited\u00a0 \u201can experienced originator focused on supporting North based clients and two skilled analysts to support our originators and clients.\u201d<\/p>\n

\u201cThere is little shortage of lenders out there,\u201d Wilson concludes, \u201cbut building rapport and a relationship where there is trust and open communication is different, and it\u2019s at the front and centre of how we operate.\u201d<\/p>\n

The post Shawbrook: Asset-Based Lenders That Care About SME Success<\/a> appeared first on Real Business<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shawbrook\u2019s head of asset-based lending, Oliver Wilson, explains how his team\u2019s flexible approach, emphasis on communication and growth mindset are delivering for a range of UK SMEs. Shawbrook, an established specialist in SME finance, continues to evolve its proposition, including the\u00a0 launch of a new \u201cdedicated asset-based lending (ABL) team\u201d, says Oliver Wilson, the firm\u2019s…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"_links":{"self":[{"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/posts\/793"}],"collection":[{"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/comments?post=793"}],"version-history":[{"count":1,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/posts\/793\/revisions"}],"predecessor-version":[{"id":794,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/posts\/793\/revisions\/794"}],"wp:attachment":[{"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/media?parent=793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/categories?post=793"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/portraitsbylorie.com\/index.php\/wp-json\/wp\/v2\/tags?post=793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}