SME credit provider Caple has supported Birmingham-based Dunton Environmental, with a £1.7m eight-year unsecured loan.
As a result of the funding, Dunton Environmental expects to grow by 15% annually over the next four years and will create 10 to 15 jobs a year.
Caple is the first in the UK to offer access to unsecured lending based on the future cash flows of the SME. The business requires no collateral or personal guarantees as security.
Dominic Buch, co-founder and managing partner of Caple, said: “Successful SMEs such as Dunton Environmental need funding for growth. However, given the nature of the sector in which it operates and a lack of assets to use of security, the business could not secure additonal bank funding.
“In an asset-light economy, this creates a barrier to growth and may push businesses to issue equity instead of raising debt. Our deal highlights the flexible nature of unsecured loans and how Caple can help SMEs achieve their growth objectives.”
Neil Roe, chief executive officer of Dunton Environmental, said: “We were impressed with Caple. The Caple team showed a real interest in wanting to understand the nuances of our business and supporting us as a leading sustainability company and growing SME.
“Caple is unique in the UK and tailored the deal to provide the flexibility we required. The deal enables us gear up for significant growth and create new jobs while developing sustainable solutions to the reuse of landfill waste in the UK.”
The business currently employs 90 people and clients include Crest Nicholson, Vinci, Willmott Dixon and Persimmon Group among others.
The business also operates two fixed waste treatment facilities in the Midlands which aim to treat and recycle contaminated waste for recovery back into the construction sector.
Dunton Environmental will also use the loan to refurbish its newly acquired headquarters and develop an industry-wide training centre.
The loans Caple facilitates are part of BNP Paribas Asset Management’s SME Alternative Financing direct lending platform. BNP Paribas Asset Management aims to provide €1bn per year in funding to SMEs across Europe and €400m in the UK.
It was in November last year that Moore Stephens, the accounting and advisory firm, announced a collaboration with Caple for unsecured SME debt finance.