Our CEO, Marc Glazer, explains why Boost Capital is here in the UK and how we can help growing SMEs. Watch the video or read the summary below.
Why is Boost Capital here?
Boost Capital is here to help growing SMEs in the UK. The biggest challenge facing UK small businesses today is that, by definition, they are always growing. They need money for important things, like equipment and renovation; however, it’s difficult for traditional high street lenders to underwrite to these sorts of needs and most SMEs have difficulty accessing financing from their primary source.
Consequently, a huge funding gap exists between small business needs and high street lending, especially for SMEs that need funding in the range of £50k – £1m. Boost Capital helps fill the current funding gap in the UK.
What sort of businesses can benefit from working with Boost Capital?
If your business needs capital and shows growth potential, we’re here to help. Whether a small business needs capital for equipment purchases or renovation, Boost Capital works with businesses to understand the capital requirement and how it will help their business goals. By looking at current trends and how the business is growing, we are able to make a quick analysis of whether we think we can be helpful for the customer.
Can you give a practical example?
We were approached recently by a garage owner who was looking to expand their business by purchasing a lift. By talking through how the lift would benefit the business, we were able to understand that it would lead to a 25 percent increase in turnover. The funding we could offer our customers was therefore a crucial part of their growth as a business.
SMEs today, the biggest challenges that they have is if you look at traditional banks both in the US and if you look at high street banks here, they’re great lenders to bigger companies and to small businesses when they don’t need money. The issue is that small businesses, by definition, are always growing. So they need money for equipment. They need money for renovation. These type of needs are really tough for high street banks to underwrite to.
You know, if you’re looking at businesses that are looking for say £50,000 up to £1 million, there’s a huge gap that exists. And, we’re attempting, with Boost Capital in the UK to fill that gap.
Boost focuses its efforts on businesses that are growing. So, if we run into a business or a business finds us through our partners, through the web and so forth, and they have growth aspirations and they need capital – whether its renovation, whether its equipment purchases and we can understand what the use of the funds are for and we understand what getting these funds to the customer, what they can hope to accomplish – we’re able to underwrite the merchant, basically looking at current trends and where the business is from, where it sits now and going forward. And based on that, we’re able to make a pretty quick analysis of whether we think we can be helpful for the customer.
We, I’m thinking a few months ago, gave money to a garage and they came to us for money because they wanted to add a lift to expand their business. They tried to go down the asset finance route but weren’t able to do that. And basically, our group at Boost sat with them; we understood what the cost of the equipment was and we went through their financials and said ok, we can get you this money. What does this do to your financial position? Basically, by adding the lift, the business was able to increase their turnover by probably 25 percent. And that added revenue is able to let the business get to the next level of where they want to be. And by us providing the capital, we feel like we’re an integral part of where that business is going.
Boost Capital, President & CEO