Looking beyond trading history
For newly established businesses, historic financial information is only one part of the picture.
Photography: Julian Basjel
In this case study, Sarah Toyne, Broker Development Manager at Close Brothers Broker Solutions, shares how a collaborative approach helped deliver a £262,000 asset finance facility for Control Core Ltd, a specialist provider of technical production services to the live events industry.
"At Close Brothers Broker Solutions, we understand that some of the most exciting opportunities come from backing ambitious businesses at the very start of their journey.
"Recently, we supported Control Core Ltd, a newly established specialist provider of technical production services to the live events industry, with a £262,000 asset finance facility to acquire a suite of market leading camera motion and broadcast control systems.
"On paper, this was an early-stage business. However, the strength of the opportunity extended far beyond the company's brief trading history. Control Core was founded by highly respected industry professionals with extensive experience in live events and broadcast production. Collectively, they have built strong relationships throughout the sector and established reputations for delivering on some of the largest productions in the industry. Their expertise and network enabled the business to secure significant contracts at an early stage, including the international, record-breaking Harry Styles music tour, ‘Together, Together’.
"The option was there for the business to cross-hire the equipment to fulfil the contract, but the preference was to buy and operate its own equipment so it could ensure continuity of supply and that their client always had brand-new equipment for their production.
"By acquiring core equipment through asset finance, Control Core was able to bring critical infrastructure in-house, therefore improving margins and creating a platform for long-term growth. The assets funded are expected to be utilised for many years across multiple high-profile productions, providing ongoing revenue opportunities well beyond the initial contracts.
"As with many early-stage businesses, there was limited historical financial information available. Instead, our underwriting team took a holistic view of the proposition, considering:
- The experience and track record of the business owners
- Contracts and visible future income streams
- The strategic importance of the assets being acquired
- The strength of customer relationships within the industry
- The long-term growth prospects of the business
"A key factor in the success of the deal was the quality of the proposal presented by Duncan Payne at Adamantean. Bringing a start-up business with no trading history to a lender requires far more than simply presenting financial information. Duncan provided a clear and comprehensive overview of the business in support of the application, highlighting the strengths and mitigating the potential issues — not least that the equipment would follow the tour around the world, spending months at a time out of the UK.
"From the outset, there was open communication between Duncan, the customer, myself as the BDM and our underwriting team. This collaborative approach gave everyone a clear understanding of both the opportunity and the associated risks, enabling us to make an informed lending decision, reach an appropriate structure, deliver funding within the required timeframe and ultimately support the business at a crucial stage of its growth.
"While Control Core was a newly established company, the strength of the management team, their industry reputation, contracted income and ambitious growth plans gave us confidence in the proposition. This deal demonstrates what can be achieved when experienced entrepreneurs, a knowledgeable broker and a supportive funding partner work together."
Duncan Payne of Adamantean added: “From the outset, Close Brothers Broker Solutions understood and believed in what we were trying to achieve. The risks of funding any young business are often challenging, and they worked productively and at pace to mitigate these, and were able to offer a well-suited and pragmatic funding solution. Great work by all there.”
We're excited to see what the future holds for Control Core and are proud to have helped provide the platform for its next stage of growth.
Speak to our team
To find out more about the funding solutions available through Close Brothers Broker Solutions, speak to your Broker Development Manager or contact our team.
About the author
Sarah Toyne
Broker Development Manager, Close Brothers Broker Solutions
Sarah works closely with asset finance brokers to support funding opportunities across a wide range of sectors and business stages. In this article, she shares her perspective on a recent transaction that highlights the importance of broker collaboration, informed underwriting and understanding the wider story behind a funding proposal.
Products and services are subject to eligibility, status, terms and conditions, and availability. All lending is subject to status and lending criteria. The right to decline any application is reserved.
