New £2m growth funding for Neo G

Alternative SME credit specialist Caple has supported Neo G, a UK-based manufacturer of orthopaedic braces, with a £2m eight-year unsecured loan.

Neo G will use the loan to continue its expansion across America and launch in new markets including China and Scandinavia. As a result, Neo G expects its revenues to almost double this year to reach nearly £30m. The company has grown almost tenfold in eight years, from revenues of £2-3m.

SMEs such as Neo G typically have difficulties raising money without having assets to put up as security to banks.  That could 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 firm.  It requires no collateral or personal guarantees as security. Loans originated through Caple also work alongside existing bank lending.

Caple originates loans through a local partner network of accountancy and business advisory firms. Will Arnold, partner at corporate finance advisors Sentio Partners, supported Neo G.

Dominic Buch, managing partner and co-founder of Caple, said: “Neo G has a strong management team, a clear strategy for growth and an already successful international business.

“To continue its expansion in America and sell into new markets it needed growth funding.  But, like many UK SMEs, Neo G did not have physical assets to access additional secured lending.  The unsecured loan Caple has facilitated will enable Neo G to unlock its potential and grow globally.”

Paul Starkey, founder and managing director of Neo G, said: “We are the fourth largest medical device company in the US in our sector.  But we are only just scratching the surface.  We want to be number one.  The loan through Caple enables us to grow our presence in America, expand into new markets and continue our impressive growth trajectory.

“The unsecured nature of the loan Caple has given us access to means we can finance growth without having to give up equity or control of the business.  We know what we need to do, we just needed the funding to do it.”