BMS Finance is a relationship lender and we believe in building and maintaining a close relationship with each borrower, based on a deep understanding of their business. Our business model is based on backing businesses, in particular management teams, and we focus on both understanding their business as well as being confident that the management team can deliver on their business plan.Our lending is usually driven by a borrower’s need to fund the working capital requirement associated with a growing company, the development of new customer propositions or markets or the acquisition of assets or companies. The common element driving our lending is growth.

The key terms of our lending are:

  1. Loans of up to £6,000,000
  2. Fixed rate interest rates of 12-14% plus warrants
  3. Senior secured, term loans or leases – we do not generally provide second lien or more junior loans
  4. Financial covenants appropriate for each borrower
  5. Although structures can be tailored appropriately for each borrower, typical lending structures include 2-5 year amortising loans for ‘cash flow / EBITDA’ lending or 2-3 year non-amortising ‘asset’ backed loans

Businesses we lend to have certain characteristics:

  1. Companies in growth phase which have demonstrated sales traction and good growth prospects – we do not back pre-revenue businesses
  2. At or imminent profitability
  3. Asset base concentrated around intangible assets such as intellectual property, know-how, customer relationships and overall enterprise value of the firm
  4. Managed by strong, proven management teams
  5. Sector focus – business services, software, IT, media, technology and financial services