London-based Newable Commerce, a trade finance provider focused on small and medium-sized enterprises (SMEs), has secured £70 million in funding aimed at enhancing export financing options for UK businesses. This funding is part of a multi-year facility that will be allocated over the next two years, enabling Newable to assist SMEs in navigating the complexities of international trade.
Funding Sources and Structure
The funding round was led by Quilam Capital, which contributed £40 million, while Shawbrook Bank and Hampshire Trust Bank shared the remaining £30 million. Although specific contributions from Shawbrook and Hampshire Trust were not disclosed, their involvement underscores a robust backing for Newable’s mission to empower SME financing.
Newable’s Offerings and Market Position
Newable Commerce is part of the larger Newable Group, which has been operating for over 40 years and transitioned to an employee-owned model in 2016. The firm specializes in providing working capital facilities of up to £300,000 with repayment terms extending to 24 months for businesses with annual turnovers under £10 million. The interest rates for these loans range from 1.5% to 5%, with a commitment to offering quick access to finance—often within days—allowing SMEs to fulfill urgent orders.
Phil Reynolds, Managing Director of Newable Commerce, expressed excitement about the new funding, noting that it will significantly enhance their ability to support UK SMEs in their export journeys. He stated, “There is a growing imbalance between SMEs looking to export and available funding options particularly in the sub-£10 million turnover market.”
Addressing Trade Finance Challenges
A recent report from the World Trade Organization highlighted that nearly half of trade finance applications from SMEs are rejected by lenders, often due to stringent criteria that favor larger companies. Those that do receive financing frequently face higher rates compared to their larger counterparts. Newable aims to bridge this gap by providing accessible financing solutions tailored specifically for SMEs.
As an accredited lender under UK Export Finance schemes, Newable Commerce is well-positioned to support UK exporters. The company’s initiatives align with UKEF’s objectives, ensuring that viable UK exports do not fail due to a lack of financial support.
