We advise on, structure and arrange credit solutions for established small and medium sized businesses
We help borrowers navigate
the credit markets
CreditSquare Advisory offers a highly specialised and experienced team of individuals tasked with finding you the best solution to fund your business.
Attractive risk-adjusted returns
Non-bank providers of SME credit can compete with rapid turnaround times and a less ‘product-based’ offering, extending loans at a significant premium to banks. The loans are generally structured as senior secured, with bank-type covenants, resulting in an attractive risk-reward profile.
The CreditSquare team is in a unique position to seize the opportunity
We have spent years building a detailed understanding of the UK SME credit space, establishing a robust origination framework and an understanding of the current options for a borrower. We combine this with firm-wide experience from large investment banks and consultancies, dealing with institutional investors and borrowers. This expertise is now leveraged to produce an investable product for institutions looking for exposure to SME credit.
Reducing the transaction costs
In order to find the balance between a well-structured and properly analysed situation, and keeping the costs appropriate for the size of transactions, we utilize our process-based IT-platform to process all stages of a credit.
High street bank oligopoly is eroding
Regulation and bloated balance sheets have meant that banks have stepped back, leaving a large funding gap in the market. Combined this with improved accounting standards and availability of information, their oligopolistic position is a thing of the past.
Slow lending processes & low approval rates
Virtual monopoly and overly bureaucratic organisations often make for a very frustrating experience for borrowers.
By taking the time to understand the borrower’s business and reason for seeking credit we can streamline the process.
Overloaded bank balance sheets
Legacy debt remains on the high street bank balance sheets, constraining lending despite ample access to liquidity.
CreditSquare works with more flexible lenders who don’t have this problem.
Increased regulatory environment
SME lending carries a higher risk weighting under the Basel framework, making it less attractive for banks.
We are aware of the issues and have access to a variety of alternative lenders when the banks are not enough.
Slow-moving investment mandates
Institutional debt investors often overlook the SME space, many times due to a lack of understanding.
At CreditSquare we have invested significant time in educating credit investors on the attractiveness of the space.
CreditSquare bridges the gap between a borrower looking for funding to an investor looking for an investment with favourable risk-adjusted returns.
STEP 1: Information gathering & assessment
We start our process by talking to you to understand your situation. The questions we ask may seem rather detailed for a first step, but this is because we know what information our lenders, including the CreditSquare credit team, need in order to provide indicative terms.
Based on this initial discussion and some basic financial information, we create a proposed engagement document which defines our proposed approach and what expect to achieve for you as a client. Our suggested approach ranges from a wide-ranging competitive advisory process to a targeted approach, depending on your requirements.
STEP 2: Discussions with selected lenders
We match your lending request and your company profile with the lenders most likely to meet your requirements. At this stage, we do not reveal the name of your company to lenders, unless appropriate to do so and agreed with you.
We share details of your requirement and our analysis with selected lenders in our own standard format, which lenders are used to seeing.
STEP 3: Feedback & indicative terms
The lenders review the information we send them and make a decision on offering indicative terms. We manage the process with the lenders to ensure an efficient process.
We then share details of the indicative terms with you, and discuss which lender you would like to proceed with.
STEP 4: Formal credit application
Proceed with chosen lender. We stay involved in a hands on role during the whole process in order to make sure it runs smoothly and efficiently and to answer any questions that you may have.