ThinCats increases maximum initial loan size to £20 million

ThinCats, the alternative finance provider has raised its maximum initial loan size from £15m to £20m. 

The change follows increasing demand from what ThinCats says is a funding gap in this part of the market. 

ThinCats’ average initial loan size has increased to more than £6m over the last 3 years and during this time ThinCats has provided more than £500m in funding for loans above £10m in size.

The minimum initial loan size remains at £1m, but the increased loan size will be available to three main borrower types: owner managed businesses, private-equity sponsor-backed business and healthcare businesses. 

Funding can be used to support growth capital, acquisitions and refinancing.

ThinCats also provides follow-on funding beyond £20m – the largest exposures to date have been £35m.

Ravi Anand, Managing Director, ThinCats, said: “Solidifying our position to provide £20m in initial funding is a response to clear demand from our nationwide network of advisers and sponsors wanting the same flexible and pragmatic approach for more of their clients and portfolio companies. Furthermore, to support future requirements we will provide follow-on funding above £20m.

“ThinCats is leading the way in filling the gap left by traditional lenders for funding the needs of high growth SMEs. This is one of a number of initiatives to widen our range of bespoke solutions for mid-sized businesses.”

The lender has most recently supported TKC, a Greater Manchester-based supplier to the kitchen industry with funding to accelerate the company’s growth plans.

Founded in 1989, Denton-based TKC is backed by private equity investor NorthEdge and recently acquired a 60,000 sq ft warehouse which has doubled operational footprint.

The business employs over 170 staff, and following investment from NorthEdge in 2015, has grown significantly, notably expanding its routes-to-market into complete kitchens.

The funding from ThinCats will be used to support continued investment in the company’s product offering, technology, infrastructure, and for future strategic acquisitions.

The transaction was advised for ThinCats by Shoosmiths and financial due diligence was provided by Cowgills.