The Market Opportunity
Experienced private and institutional investors, be they contemporary or traditional, are turning to alternative asset classes as part of a balanced portfolio, especially in light of the current low yield environment in the debt markets. The small and medium sized lending market offers significant opportunity for investors to earn high yields given the higher perceived ‘risk’ in this sector. There is a substantial gap being left open by traditional lenders, who are often constrained by regulation, a low risk appetite and complex internal processes.
Huddle's Approach
Huddle fill this gap which benefits not just the organisation, but its investors and a large number of SME’s who were previously unable to access finance. The Company’s senior management team has approved in excess of £100million of lending to SME’s and due to the quality of credit risk underwriting and debt management process, with bad debt records at less than 2%.
Investor Access
The Company allows investors the opportunity to participate and gain exposure to this new SME lending asset class. The Company actively engages with all types of investors, ranging from individual high net worth individuals to the more traditional investment houses, as well as partnering with banks to explore innovative solutions to meet their lending needs.
Secured Lending
The Company provides secured business loans to high-quality SMEs, facilitating working or expansion capital needs. These facilities are secured by property assets and personal guarantees, establishing a robust financial foundation for sustainable growth and ensuring successful repayment.
Diversification
The Company advances a broad spread of secured loans to achieve a diversified portfolio across all borrowers. Within the Huddle rolling facility, funds are deployed on a discretionary basis over a combination of deals with varying security: 1st charge, junior and mezzanine debt, residential and commercial property.
How We Work
We only want to offer our investors highly curated lending opportunities, with this in mind we have a stringent assessment process in place for our loans. Some of the core features we look at when accessing and approving a loan, are the following
Security & Collateral
The quality of the underlying loans we make are enhanced by using tangible assets (usually property) as security. We work within strict parameters and a maximum LTV of 80%, with the majority of loans falling beneath that threshold.
Short - Medium Term Maturity
The loans we make typically range from 6 to 24 months. Short-medium term financing is naturally self-liquidating, as there are multiple take-outs due to the variation of underlying loan terms. This ensures loan capital is regularly returned to investors.
Exit
We prefer to lend to borrowers who have a clearly defined exit strategy. This strategic approach enables us to control cashflow, effectively manage repayment expectations, and thoroughly access the credit risk of each borrower.
£84m
Capital Raised from Investors
£38m
Capital Repaid to Investors
£10m
Interest Paid to Investors
0
Default to Investors
Find Your Next Investment Opportunity
Huddle works to achieve fair returns for investors while also supplying support to UK businesses that have not been given the finance to grow.
By connecting the two, businesses are given the opportunity to thrive, and investors gain access to attractive returns on their savings.
- +44(0) 113 468 1408
- info@huddlecapital.com
- 10 Park Place, Leeds, LS1 2RU