There are over five million SMEs in the UK. They are the backbone of our economy, collectively employing some sixteen million people and spreading prosperity across the regions. We want SMEs to focus on what they do best; producing a great product for domestic and international markets.
So what's the problem?
As small and medium business grows it's business it will typically need to invest in equipment and machinery to expand production lines, improve efficiency or deepen its production. Financing recoverable assets for growing business should be relatively fast and affordable. Unfortunately, more often than not, SMEs incur excessive costs, uncertainty and time wasting at this pivot point. Over £40billion of business critical equipment and machinery is acquired every year but frequently the equipment finance comes with hidden fees, excessive interest rates and unnecessary complexity. Furthermore, redundant technology and too many middlemen lead to turnaround times sometimes as long as three weeks.
Technology, new funders and a fresh approach.
EquipmentConnect will be a full technology solution that opens up and modernises equipment finance. Development commenced in 2017 and when launched later this year, the platform will connect SME companies seeking to finance new equipment with investors attracted to funding ring-fenced, business-critical assets.
However EquipmentConnect technology will offer more than just a match making service for funding. The development will feature advanced data collection, analysis and storage functionality. This will improve the entire borrower/lessee experience, provide stakeholders with greater control over key data and contribute to better management of equipment over it's life cycle.
Below please read more about the different aspects of the EquipmentConnect platform.
The emergence of EquipmentConnect is rooted in London's fintech (financial technology) revolution. In the last five years the application of technology to financial services has made a greater impact than in the previous twenty years. Customer experience and investor access have improved substantially because of the introduction of empowering technology. Read more here about our tech here:
Equipment Finance is the financing of new business equipment, plant and machinery. This should not be confused with Asset Backed Lending which is borrowing money using existing assets as collateral.
In this section we will discuss why equipment finance is important and the different forms it can take. Read more here:
Funding equipment can be an attractive investment as it offers some attractive characteristics within the much larger universe of secured credit. In this section we analyse the sector from an investors point of view comparing equipment finance to other asset class. Funding equipment and machinery offers relatively predictable returns over a short to medium term horizon of 2 to 5 years. Straight line amortisation, overcollateralisation and multiple levels of credit enhancement all combine to offer a strong investment thesis. Read more here:
A combination of finance professionals with business development experience at investment banks, risk consultancy and leasing experience with technology experts who have worked with large business equipment and who have designed and developed financial platforms. All are based in London, the crossing point of Financial Technology and Alternative Credit. Read more here: