We are an innovative form of alternative finance, a marketplace lender matching the financing requirements of businesses and entrepreneurs with funders seeking returns above the current low interest rates available elsewhere.
The Sancus Group has announced the launch of its new electronic platform for bridging and property development lending in the UK.
The UK business provides funding opportunities for institutional and high net worth investors (minimum participation £100,000) through its FCA authorised subsidiary, Sancus Funding Limited.
Asset backed loans from £500,000 upwards will be available to borrowers. Sancus recognises that a borrower’s key requirements are speed and certainty when dealing with lenders, this further expansion of their presence in the UK will benefit both borrowers seeking an efficient and straightforward service and funders who are seeking a yield/income higher than current cash rates or other alternatives.
Dan Walker, Managing Director, Sancus Funding (UK) says, “There is significant demand in the bridging and development finance market in the UK where the fundamentals for alternative finance remain strong and we are pleased to have recently completed the first loan on our new electronic trading platform.”
Andrew Whelan (CEO, The Sancus Group) added, “The Group passed the £1bn funding milestone earlier this year, and with significant growth over the last few years in asset backed lending, this is the right time to direct more resources towards expansion in the UK market. We have made significant investment in technology to support this growth, allowing us to concentrate our efforts into robust credit processes, which remain a key strength of the business.”
The launch of the new platform is covered in the following press:
We were delighted to support a range of businesses, institutions and individuals over a variety of sectors across the UK, Ireland, Jersey, Guernsey, Gibraltar and the Isle of Man last year.
Sancus Borrowers have included entrepreneurs, developers, SMEs, hoteliers, and High Net Worth Individuals.
Funding has been used for a range of projects, including new site constructions, existing property re-development, student accommodation builds, hotel refurbishments, high value residency house builds and entities looking to refinance existing debt.
It is now January 2019 and as I currently write this article, the UK has less than three months before it leaves the EU.
Recent events, delays and government in-fighting has led to more uncertainty than ever, meaning, once again UK businesses and enterprise have been left to soldier on and pick up the pieces.
The media is reporting numerous stories of UK businesses stockpiling goods and increasing inventories, particularly in the wholesale, food, medical and manufacturing sectors. The economic think-tank CEBR claims that there is now widespread evidence to show many UK businesses were stockpiling through the second half of 2018, which has now escalated into 2019.
Although stockpiling and boosting inventories potentially resolves some issues; it can, however, also create others. It is therefore paramount that businesses are planning ahead to ensure they remain flexible and are able to swiftly adapt to any challenges in their environments. The primary questions being how much additional stock should be purchased and how it will be financed?
Purchasing stock from cashflow ties up valuable cash reserves making the business less liquid and prevents working capital from being spent on better yielding alternatives. However, if you are purchasing stock through credit lines, there are a range of options available depending on your business, sector or market. Traditional lenders have always offered facilities such as overdrafts and loans, but Sancus can also offer innovative solutions such as Supply Chain Finance.
Supply Chain Finance is an unsecured, revolving working capital facility that is used to buy stock or pay other suppliers. The facility sits off balance sheet with the lender paying stock purchases directly for the buyer, without affecting existing banking lines or security. The facility is then repaid by the buyer at a pre-arranged future date; usually at the end of the trade cycle when debtor funds are received.
This solution facilitates additional stock purchases without using valuable cashflow. It can also bridge lengthy funding gaps between payment of suppliers and inward payments received from customers. The facility also extends creditor terms which means stock purchases can be spread out over a longer term (without any detriment to the supplier). This acts as a working capital injection which can be used to fuel future business growth.
Alternatively, these facilities can be also used to drive discounts from suppliers by offering early payment terms, which often increases buyers profit margins, even when taking into account the cost of finance.
If you’re considering buying more stock as part of your BREXIT planning, or would like to have a wider discussion about financing stock or increasing working capital, then I would be more than happy to see how Sancus can help support you and your business.
Andrew Oppe Regional Director – Sancus Finance 07432 076 091
The Sancus Team in Jersey recently celebrated their fifth anniversary with a party at their offices.
The Company, originally co-founded in Jersey in 2013 by Andrew Whelan and John Davey, started with a team of just three, the company now has grown to seven offices across six jurisdictions and employs over 50 staff, with head office based in Jersey.
There were 100 guests at the event, including Sancus Co-Funders and Borrowers, friends, business colleagues and supporters.
In the above photo (left to right) Ryan Austria (accounts executive), Steve House (Business Development), Amanda Overland (Head of Marketing), Peter McVeigh (Chief Financial Officer), Emile Golding (Group Legal Executive), Andy Whelan (CEO, Sancus BMS Group), Hayley Potts (PA to CEO), Shaida Aziz (Head of Compliance), Aaron Le Cornu (Chief Operating Officer) and Stuart Hamilton (Business Development).
Sancus welcomes a blog post from Julie Barry at RIFT, discussing R&D tax credits and how they could benefit your business.
It’s no secret that we’re heading into a critical time for the whole UK construction industry. It’s going to take an estimated 158,000 new jobs to hit the targets for infrastructure and housing needs alone. With productivity lagging and razor-thin profit margins all through the sector, meeting those demands could be a tall order. The pressure’s on to make the building trade more efficient, more agile and more sustainable. With too few boots on the ground – and at every other level – it’s going to take fast-forward thinking to pull it off.
That means seizing opportunities wherever they arise and making the most of unexpected resources.
Profit margins and productivity are being squeezed hard in construction. The one-two punch of the skills shortage, and the potential choking off of overseas labour by a looming Brexit, are ramping up the pressure on an ageing workforce. As projects become more complex, they throw up increasingly difficult challenges, and unexpected setbacks can prove to be a real hazard for building firms already stretched too thin.
Despite all this, construction is an industry that’s both founded on and driven by innovation. Developing new materials, processes and approaches has become so much a part of day-to-day business that it’s becoming invisible. It’s so crucial to realise that, while innovation can be its own reward, it’s not its only reward. While you’re out there working on solutions to your own immediate problems, you’re potentially pushing back boundaries for the entire industry – and even beyond. That’s the kind of innovation that the UK’s R&D Tax Credits system is trying to encourage and reward. Even if your research doesn’t ultimately pay off in itself, it can still form the basis of an R&D Tax Credits Claim. We’re talking about the single largest incentive scheme of its kind in the UK. However, far too few companies understand what they qualify for – or even realise that they’re missing out, in the first place.
For every challenge mounting up in UK construction, there comes a real opportunity. Bringing your best ideas to life carries risk, and it’s understandable that some firms shy away. At RIFT, we’ve set ourselves the mission of bringing the full benefits of R&D Tax Credits to UK construction. Innovation is critical to the industry’s future, so we’re ensuring that it always brings rewards.