Ashcombe advises TradeBridge on a £100m securitization facility
Ashcombe is pleased to announce that it has advised Woodsford TradeBridge (“TradeBridge”) on a securitization facility of up to £100m with leading global investment firm Castlelake L.P. Alongside existing senior banking facilities, the additional funding further strengthens TradeBridge’s position as a leading provider of revenue-based finance.
Founded in 2014, TradeBridge is one of the largest, and most rapidly growing providers of revenue-based finance worldwide, having funded in excess of $3bn of transactions across three industry verticals:-
e-commerce, a rapidly growing division where TradeBridge provides embedded finance for certain platform partners (e.g. Farfetch) and direct B2B revolving credit lines to merchants;
Pharmacies & dentists in the UK where it is the market-leader (TradeBridge recently also launched a similar product offering in Australia);
Early-payment programs for UK mid-sized corporate clients and their suppliers.
The business serves borrowers in more than 50 jurisdictions and has developed a payment collection technology which, alongside an algorithmic underwriting and risk management process, minimises credit risk. With lifetime loss rates of less than 10bps, TradeBridge has therefore been able to generate very attractive risk-adjusted margins.
Olivier Bonavero, co-founder of TradeBridge, said:
“We are delighted to have teamed up with a knowledgeable and commercial investment partner such as Castlelake who fully support our ambitious growth plans. We are particularly pleased to have been able to complete this transaction at a time when sharply rising interest rates have made it more difficult for many firms to get similar debt and equity financings done.”
Josh Black, Associate Director at Ashcombe, commented:
“We have known TradeBridge for almost 10 years and have been hugely impressed by the energy and prudence with which Olly & his team have developed a market-leading financing platform whose technology infrastructure is second to none. We are highly confident that recent growth is sustainable in an environment that will reward profitable and well-capitalised businesses that are ready to expand internationally.”