Business Model
The Company’s goal is to offer alternative finance options to SMEs through lending, mainly in the UK. The loans provided to Borrowers by the Company will be business loans to companies or, if to sole traders, will be in excess of £25,000 and therefore outside of the consumer credit regulations.
We only want to offer our investors highly curated lending opportunities, with this in mind we have a stringent investment strategy and assessment process in place for our loans.
Strategy
The Group’s strategy is to seek investment opportunities that fall in line with our pre-determined lending criteria and investment parameters, and provide corporate loans to businesses secured against their assets.
A typical loan we provide to businesses is within the broad parameters below:
Type of Loan | Secured by assets (property) and usually a debenture over the business |
Geographic Location | UK |
Stage of Borrower | Start ups |
Maximum LTV | 75% against assets over which the business holds a charge |
Term of Loan | 6 months – 36 months |
Loan Amount | Band A: £50,000 – £1,000,000 Band B: £1,000,000 – £5,000,000 |
Geographic Location of Borrower | United Kingdom (UK) |
Industry Sector |
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Security | In addition to a debenture over the business’ assets, where possible, all borrowers support their loan with a directors’ or shareholders’ personal guarantee. |
We focus on businesses that primarily exhibit the following characteristics:
Security
A substantial security package
Committed Management
Committed founder(s) or senior management
Track Record
Experience & track record of success in the relevant business sector
Clear Model
Clear and understandable business model
Transparent Reporting
Transparent reporting processes
Tangible Roadmap
A roadmap, including key milestones, offering tangible measures of progress
Our Loan Portfolio
Our Loan Portfolio includes two types of Borrower Loans.
Band A Loans (£50,000 - £1,000,000)
These loans are typically SMEs that require funds primarily for cashflow purposes. These SMEs usually have some form of property or other tangible asset that can be valued, that we can take as security. Exit on these loans are typically repayment out of cashflow of the business, and the assets are provided as additional collateral should cashflow not be sufficient.
Band B Loans (£1,000,000+)
These loans are typically made to growth businesses or businesses that have an urgent requirement of capital to perform a transaction. These borrowers have some form of asset to pledge against the loan as security. Exit for these loans tend to be refinances with traditional lenders or sale of the assets.
£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