We help borrowers navigate
the credit markets
Our platform offers high quality SMEs access to credit via our institutional investor partners.
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. We can offer direct access to the CreditSquare Term Loan using capital from our institutional partners, as well as run a competitive advisory process for 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.
Our process is clear and transparent. Our client is you - the borrower - and we work with you to assess requirements, understand your business and then present it to suitable lenders. The four steps are:
STEP 1: Producing a transaction overview
As an investor, you will be provided with a transaction summary, a document that includes a situation overview, business KPIs and usage of funds. Furthermore, we provide summary financials, proposed debt metrics and notes / commentary. This will provide the base for an initial assessment as to whether it goes any further as well as providing the borrower with indications of terms.
STEP 2: Due diligence and information gathering
CreditSquare advisory, sometimes in conjunction with third party advisory firms, collects a set of information sufficient to take to full credit assessment. A continuous dialogue with credit is maintained to avoid unnecessary additional information requests.
STEP 3: Credit analysis and structuring
The CreditSquare credit team performs a full credit assessment of the borrower and structures a loan document. This is done in parallel with any additional third party due diligence. The output to an investor is a full credit pack ready for approval, which includes a credit memo, full financial model, a data room with underlying data and any other relevant information.
STEP 4: Drawdown and loan administration
Once a loan has been drawn down, CreditSquare maintains the relationship with the borrower, performs servicing, security agency and any restructuring services.