Nationwide Stainless complete successful MBO

Alternative SME credit specialist Caple has supported stainless steel stockholders and processors Nationwide Stainless with a £500,000 eight-year unsecured loan.

Nationwide Stainless will use the loan to complete a management buyout (MBO) of the firm. Managing director Steve Laybourn has taken 100% ownership of the business from the previous two shareholders, who will remain as directors.

Steve Laybourn, managing director of Nationwide Stainless, said: “Having run and grown Nationwide Stainless for the last two years, now is the right time for me to take ownership and control of the business.

“Caple was an ideal fit for our needs, providing access to long-term unsecured lending without the need for personal guarantees. The deal enables me to focus on expanding the business by growing exports and our work in the construction sector.”

SMEs such as Nationwide Stainless typically have difficulties raising money without having assets to put up as security to banks. That can mean they instead have to make personal guarantees or dilute their ownership by issuing equity.

Caple is the first in the UK to provide access to unsecured lending based on the future cash flows of the SME. The business requires no collateral or personal guarantees as security. Loans originated through Caple complement existing bank lending.

Caple originates loans through a local partner network of accountancy and business advisory firms. Kevin Davis, partner at business advisory firm BHP Corporate Finance, supported Nationwide Stainless.

Dominic Buch, co-founder and managing partner of Caple, said: “Successful SMEs such as Nationwide Stainless operate at the heart of the UK economy.  But many struggle to access finance because of the lack of additional assets to put up as security.

“Our deal delivers stable and long-term funding that supports managing director Steve Laybourn to take full ownership and drive growth.”

Caple worked alongside high street bank Lloyds Bank on the deal.