Triple Point's partnership with Tosca Capital supports acquisition of GRS
10 June 21
10 June 21
There’s a palpable current of joy meandering through UK high streets. Men and women are sporting fresh haircuts. Children are back at school, allowing parents to unleash themselves in shops that can finally welcome customers back. Who knew social interaction and the fuel of a takeaway coffee could evoke such a giddy reaction?
After a tumultuous year, we all deserve a dose of happiness, particularly the front-line workers who have been the heroes of the pandemic. Everyone has played their part in encouraging a sense of community and long may it continue. We shall not dampen these spirits. This is not an article lost in the trials and tribulations of Covid-19. Instead, this is a reflection on the challenges faced by UK businesses, and the innovative support provided by a leasing and lending team with a rich history of supporting a diverse range of UK borrowers.
An unprecedented year for UK businesses
As you walk through your busy local high street with a spring in your step you may be faced with a sobering realisation. So many of our beloved shops have closed for good.
It is no surprise that business owners have faced enormously disruptive challenges over the last 12 months. Organisations have been forced to decrease output, cut jobs, change their business model, adopt new technology, develop new offerings and expand existing product lines. Any management team looking to secure capital will have experienced constrained capacity in the capital markets, a change in lending appetite, and an increase in the scrutiny of applications. Even the largest corporates, supported by established banking relationship teams, have felt the pain.
It’s also true that organisations in the public sector have felt the challenges of needing lightning-fast access to capital to respond to a worsening public health emergency. Capital has been required to meet the significant levels of investment in new equipment over and above the regular replacement of ageing assets.
Support for borrowers during Covid-19
Government support schemes have clearly been vital for so many businesses. The Coronavirus Job Retention Scheme (the Furlough Scheme) has protected more than 11 million jobs since its inception in March 2020. It has been an invaluable safety net for business owners and workers across the country.
What’s more, support by way of government-backed lending has been essential for so many businesses. The Government’s Bounce Back Loan scheme has helped micro-companies seeking loans of up to £50,000 and the Coronavirus Large Business Interruption Loan Scheme (CLBILS) has helped larger businesses seeking financial support of up to £200 million. For small and medium-sized enterprises (SMEs), the Coronavirus Business Interruption Loan Scheme (CBILS) has been enormously important, enabling eligible business owners to borrow up to £5 million. After much success, CBILS officially ended on 31 March 2021.
Government schemes have clearly been fundamental for keeping businesses afloat. However, with mainstream banks hamstrung due to their focus on supporting existing borrowers, management teams have still struggled to access innovative, responsive, and tailored financial solutions for their needs.
Innovative financing solutions for UK businesses
With a rich history of supporting a broad range of UK borrowers, Triple Point has remained open for business over the last 12 months, providing impactful leases and loans to a diverse borrower base that could no longer rely on mainstream lenders to meet their needs for efficiency and liquidity.
Triple Point’s leasing and lending businesses have been actively working to support all sectors of the economy. The support has been widespread: from financing NHS equipment for front-line health workers (including rapid response ambulances, ventilators, and isolation pods); to innovative working capital loans to SMEs. Triple Point has also supported supermarkets and logistics providers for the delivery of food and essentials; and financed property development and large-scale corporate financing deals that have been crucial for providing homes and stimulating growth.
Over the last 12 months, Triple Point’s range and breadth of financial support across the UK economy has been immense. To put things into context: the SME Finance Team was recently recognised in the Top 10 list of UK debt providers (Q1 2021), as the “most active debt provider” in the East of England. In total the entire Leasing and Lending Team have provided over £250m of financing to UK-based organisations since the start of the pandemic, including £125m of CBILS loans to those SMEs most impacted by the pandemic.
What does the future look like for UK businesses?
As companies traverse the ‘new normal’ and prepare for the future it is vital that they feel supported, more so now than ever. Good businesses deserve to flourish, and Triple Point is dedicated to empowering organisations throughout the UK with the support they require.
Triple Point has made a clear commitment to sustainable business within our company mission. The teams who run both Navigator and Generations take full account of ESG factors when establishing loan or lease facilities. We believe that strong ESG integration is a crucial requirement for creating value for our investors, while delivering wider benefits to people and the planet. ESG goes well beyond a response to industry expectation; it is a vital bedrock for maintaining client relationships and a fundamental tool for credit risk mitigation, and long-term asset performance.
At Triple Point, we recognise the monumental challenges business owners and service providers have faced not only over the past year. Both public and private sectors have benefitted from our commitment. We have helped keep public services running, provided forbearance support to the leisure sector, and supported the private sector’s transition to working from home through investment in technology and software. Backing companies throughout this period continues to be incredibly important.
Triple Point's leasing and lending businesses are well-capitalised, well resourced, and liquid. We remain committed to helping borrowers find their way through challenging times and enabling them to maximise their growth potential.