An Edinburgh finance company has helped to facilitate a deal in which one of the UK’s fastest-growing B2B crowdlending platforms is asking its lenders for a record-breaking £2.3 million to provide working capital to a Scottish occupational healthcare firm.
Alderburn Finance Solutions has arranged the loan between ArchOver and Duradiamond which will support four new contracts recently won by the Perth-based firm.
The loan is broken down into two components: a one-year loan of £500k to provide additional working capital to support Duradiamond’s four new contracts, and a £1.8 million two-year loan to take out an existing working capital facility provided by RBS. Lenders over the ArchOver platform will earn 6.25% and 6.75% per annum respectively.
ArchOver CEO Angus Dent said: “What really matters is that this exceptional Scottish company receives all the support it needs and deserves. It would be a tragedy if its growth potential was restricted by lack of appropriate finance. This is a golden opportunity for lenders, both North and South of the border, to get behind this project and, at the same time, earn a good return on their money.”
“On another level, not only will this represent a record loan for ArchOver, we also believe it will be the largest non-property related working capital loan in the crowdlending sector anywhere in the world. It is a ‘coming of age’ story where we can demonstrate our flexibility and capacity to provide facilities that are beyond the reach of the banks.”
As a result of the four new contracts, Duradiamond is expecting its turnover to rise to £14 million this year, an increase of 19% over 2015, and to £17 million and £21 million in 2017 and 2018 respectively. Founded and run by medical professionals since its inception in 2002, the company counts among its customers Jaguar Land Rover, BMW UK, EDF Energy, Cross Rail, BA and Heathrow and Luton airports.
The deal was arranged by Neil Davidson, founder and MD of Alderburn Finance Solutions.