Close Brothers has grown its loan book threefold in the last five years in Scotland, according to regional manager at Close Brothers Asset Finance James Waterson.
Waterson told Leasing Life that the challenges faced by the region’s ‘standard go-to providers’ have created an opportunity for alternative finance providers like Close Brothers.
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"There is a growing marketplace for asset finance and asset-based lending in Scotland. I work closely with our invoice finance team and a lot of the time we offer local customers joint asset finance and invoice finance proposals. I think south of the border you can find a number of providers with such offerings, but there are not many in Scotland," said Waterson.
He highlighted that the company is ‘not sector-averse’ and that it provides finance for a variety of assets.
"There are sectors that are doing very well in Scotland, like food and drink and renewable energy, so we have seen quite a lot of investment around these two sectors," said Waterson.
Close Brothers has been working closely with professional intermediaries, like accountants and introducers, in Scotland. Waterson said that the company’s route to market is through that professional network.
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By GlobalDataCommenting on the competition in this regional market, Waterson said: "There are a few new operators that have come into the market but they tend to operate either in the asset finance or the invoice finance market. It is rare that we see a company come in and have a joint offering. The market probably isn’t as competitive as the South East but there is a number of hungry new entrants and providers of finance. We have to work hard to win that fair share."
Scotpanel Display
Close Brothers Asset Finance provided exhibition services company Scotpanel Display with a funding facility to enable the company the company to exit administration.
Working closely in conjunction with the joint administrators, Johnston Carmichael, the finance deal secured the balance of funds necessary to pay the balance due to creditors.
Based in Glasgow, Scotpanel Display is family business that provides exhibition services including stands and display equipment for use at events. The company went into administration in 2011.
This year, the joint administrators were able to repay creditors in full, but needed to leverage the company’s assets to raise the balance of funds needed to pay statutory interest due.
Close Brothers Asset Finance supplied a sale and hp back facility secured by commercial property which covered outstanding debts.
Waterson explained: "The owners of the business raised an invoice to Close Brothers and on that invoice were assets subject to sale and refinance. We have said we will accept those assets and we will release value against those assets. They will repay us over the term of the agreement, at which point we will relinquish our interest in those assets. The commercial property piece is just as additional collateral to the transaction."
