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CMF Capital Defies Brexit Gloom to Post Record Funding Figures to UK Business PDF Print E-mail
Wednesday, 13 September 2017
CMF Capital, one of the UK’s leading independent asset intermediaries to UK SME and mid-tier businesses has announced record lending figures during its last financial year. This increase in funding levels and total number of deals completed is in despite of the uncertainty of Brexit headwinds and the continued flow of billions in funding subsidies the Bank of England provides the major UK banks.

In its recent financial statements, ending July 17, CMF Capital posted a 19.28% increase in funding levels and closing a third more deals 2016-17. This increase has seen a total of 140 projects financed across the UK with a total value of just under £55m.

With strong relationships with both UK and global banks, CMF Capital has continued to demonstrate it has the ability to provide UK businesses the funding support it requires regardless of the economic landscape or industry sector. Whilst interest rates, and therefore operating margins remain challenging in the short term, Managing Director John Mulheron is confident that 2018 will see further growth.

“Over the last twelve years CMF Capital has continued to establish itself as one of the leading independent asset funders in the mid-tier space. The business prides itself on building excellent relationships with our clients and with 80% of our revenue being generated from repeat business it proves that the funding solutions we provide are both highly competitive and the right solutions for each business.”

“We are delighted to report a 19.28% increase in funding since 2015-16 despite operating in a highly competitive industry where the major UK banks are given access to cheap money, business confidence is mixed and we have seen an increase in alternative types of financing such as crowdfunding or more start-ups looking to ‘angel investors’.” Continued the CMF Capital MD.

In early 2016, CMF Capital took the decision to rebrand. Previously known as Corporate & Marine Finance it was felt that it did not reflect the breadth of industries the business worked within. Latest figures showed 36% of funding supported the broadcast and media sector, 34% towards fleet and logistics and 8% of CMF Capital’s funding supporting the UK construction sector it is a decision that has made sense.

Another key factor behind the last years increase in funding levels is CMF Capital’s drive to increase revolving credit facilities into SME and mid-tier businesses through our funding partners from the UK, Europe or the Middle East.

“Unlike many of our high street competitors, we are able secure competitive funding from a wider marketplace. Combined with our funding solutions that tailored to the individual needs of our clients business – whether asset based, balance sheet based or via leasing terms, we have the ability to be more agile than the high street banks or other funders.”

“Whilst we evaluate the financial fundamentals of a business’s balance sheet, we also work to understand our clients’ needs. This is especially important when working with SME’s or mid-caps, taking into account their size, growth stage or sector in which they operate.” Continued Mulheron.

With the 5.4m UK SME’s accounting for 99.9% of all private businesses, accounting for 47% of all private sector turnover at around £1.8tr, there are still major failings by the major banks who control 8 out of every 10 business loans. Despite this effective ‘lock out’ and the ‘too big to fail’ subsidies, CMF Capital is confident of further growth in 2018 as it looks to strengthen its UK wide team and drive growth in key industry sectors.

“Over the last 18 months, we have invested in our marketing function which has helped raise awareness of the business. Through advertising in key trade press using our ‘Made Possible By’ strapline, a new website, dedicated social media and regular industry opinion or comment articles being published in the media, we are committed to a new and exciting phase of future growth.”

“We are also looking outside our comfort zone at sectors where we see greater opportunity for UK businesses. Sectors such as renewable energy, manufacturing, advanced engineering and new digital technologies are the driving force in a post-Brexit economy. We want to ensure we have access to the right type of funding for SME’s and mid-caps, but also continue to demonstrate our knowledge and expertise in these rapidly advancing industries.” Commented Mulheron.

Research still points to a historical lack of support from the major UK banks with the Centre for Economics and Business Research (CEBR), revealing a decline in SME lending since the Term for Funding (TFS) and Funding for Lending (FFL) were introduced in over five years ago. They were supposed to provide access to around £160bn of low interest loans linked to the base rate of 0.25%. To date, the major banks have accessed over £123bn of state-backed stimulus and those interest rates were supposed to be passed on – which hasn’t always been the case.

Findings from the CEBR point to the UK’s 10 major cities where outstanding lending dropped by 6 per cent (£2 billion) between Q4 2014 and Q4 2015. There has been a 12 per cent (£4 billion) decline in lending levels since Q2 2013. Funding has increased in 2015-16 but it is still an uneven playing field.

“For too long, high street lenders have dominated personal and business banking and this has had a negative effect on SME’s, which often do not meet the lending criteria. However, SME’s are right to be confident about the future as there are different finance providers out there, away from the high street banks, which are able to support smaller businesses with their expansion aspirations.” Concluded CMF Capital’s John Mulheron.
 

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