Intelligent funding for inspiring businesses

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Coral Weaver
8 years ago
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1 Intelligent funding for inspiring businesses

2 About UK Bond Network UK businesses seeking finance of less than 1m are now better served than ever due to the proliferation of alternative finance providers. However, those requiring a larger amount of funding continue to struggle with tightening credit distribution, and businesses which are too small to access the retail bond market can quickly find themselves unable to obtain finance to drive their growth. UK Bond Network serves to bridge this crucial funding gap, providing between 500,000 and 4million of debt finance to both publicly quoted and unquoted companies. Working closely with management teams, we invest our time to get know each business personally in order to deliver a bespoke finance solution which is tailored to their needs. The outcome was impressive; we received a valued finance solution that enabled us to focus on our strategic growth goals. Michael Veenswyk CEO of Integritie, a cloud-based software solutions provider who raised 1m through UK Bond Network in October

3 Benefits of financing through UK Bond Network From initial contact through to drawdown and beyond, we work with you to offer support, managing relationships with investors and assisting with other aspects of your business wherever possible. The key benefits Competitive borrowing rates Through an innovative online auction process, investors compete to provide you with finance at the lowest possible interest rate. You have to flexibility to reduce the coupon you pay by offering investors performance-related upside. No upfront costs When companies are seeking funding, upfront fees can be a barrier to entry. We do not take any fees until we transfer your funds to you. Upon drawdown, we take an arrangement fee of 5% along with legal and structuring costs, typically capped at 10,000. There is also a management fee of 0.5% of the outstanding principal, payable annually from the first anniversary of the bond until maturity. Debt finance tailored to you Because UK Bond Network is only open to investors experienced enough to understand complex financial structures, we can be highly flexible in the structuring of your finance. We have a long-standing record in structuring debt finance which is specifically tailored to help companies achieve their individual business goals. You only deal with one investor You only ever deal with us, meaning you avoid time-consuming stakeholder engagement, giving you more time to get on with running your business. Finance less dilutive to shareholders Debt financing can enable you to avoid equity dilution, enhancing equity value for you and your shareholders. For quoted companies, debt financing is often positively received by the market and can provide support to your company s share price. 3

4 Our flexibility Meeting your business goals Once your bond has been structured, it is placed on our platform where, through our innovative auction process, investors bid competitively to provide you with finance at the lowest possible interest rate. Repayments We can structure the repayment schedule for the bond in line with your business strategy. Interest can be paid made monthly, quarterly, biannually, or can be rolled up to maturity. Capital can be repaid through one of the following 3 mechanisms: Amortisation - Capital is repaid alongside interest throughout the life of the bond Bullet repayment - Capital is repaid in its entirety at maturity Blend - A bespoke combination of amortising and bullet characteristics Types of security We seek security through one or a combination of the following devices. As a general rule, we try to avoid taking personal guarantees unless absolutely necessary: Fixed asset security - The bond is secured against a specific asset or group of assets All assets debenture - A floating charge over all the business assets Negative pledge - Restricting the ability to issue further debt ranking senior to the bond Additional upside If a low coupon is important to your business goals, you can offer investors additional upside to encourage them to participate at a lower rate. This generally will take the form of: A bonus payment - A share of revenue growth over a defined lever, or a payment linked to the sale of the business Warrants - Giving investors the right to purchase equity at a predefined price for a predefined period (generally used by quoted companies) Convertibility - Giving investors the option to convert their bonds into stock at a predetermined price, either during the life of the bond or at maturity (again, generally used by quoted companies) 4

5 Further information Frequently asked questions FAQs How long does it take? Initial contact through to the drawdown of funds usually takes 6 to 8 weeks. During this time, the consultation process is completed, the bond is structured and made available to investors for subscription and your funds are transferred to you. Is funding guaranteed? Through relationships with institutional invstors, we are able to underwrite every bond that we issue, providing certainty of funding for all businesses that pass through our assessment process. No bond on the platform has ever failed to reach its funding requirement regardless of whether underwriting has been in place or not, although we cannot guarantee funding without it. What structures are available? We are incredibly flexible with our structuring and can work around your company s needs. More information about our structuring flexibility is available on the next page. Are there any restrictions around track record/assets/revenues? We do not place any restriction on how long the company has been trading, what assets it has, or how profitable it is. We work closely with management to see how and to what extent repayments can be made, and structure the bond accordingly. Do I need to be listed? No, businesses do not have to be listed. We assess companies on a case-by-case basis and on their individual strengths. 5

6 For more information Contact us You can contact us by post, phone and , or meet us in person by appointment. UK Bond Network Limited 18 St Swithins Lane London EC4N 8AD T: +44 (0) F: +44 (0) E: Connect with linkedin.com/company/uk-bond-network Our Story UK Bond Network was founded in 2012 by Christopher Maule driven by the growing demand of his sophisticated & institutional client base for secured yield and the appetite of SMEs for better access to flexible finance. Chris secured backing from his own clients and set out to establish a platform which served this gap in the financial landscape. UK Bond Network is an innovative, FCA-regulated bond auction platform which, through long standing experience in structuring and distributing fixed income investments and a solely sophisticated investor base, is able to deliver bespoke funding structures which are tailored to your business goals. 6

7 7 UK Bond Network Limited is an appointed representative of Cornhill Capital Limited which is authorised and regulated by the Financial Conduct Authority under number , registered address 4th Floor, 18 St Swithins Lane, London, EC4N 8AD. UK Bond Network Limited is incorporated in England and Wales registered number , registered address 4th Floor, 18 St Swithins Lane, London, EC4N 8AD.

IFRS IN PRACTICE. Accounting for convertible notes

IFRS IN PRACTICE. Accounting for convertible notes IFRS IN PRACTICE Accounting for convertible notes 2 IFRS IN PRACTICE - ACCOUNTING FOR CONVERTIBLE NOTES TABLE OF CONTENTS Introduction 3 The basic requirements of IFRSs 4 Example 1 Convertible note in