NEWS

White Oak, one of the UK’s leading non-bank lenders, has seen a strong uptick in its VAT lending offering since the start of 2023, as business confidence continues to increase.

So far this year, the firm has reported an 83% year-on-year increase in its VAT lending offering – amounting to a 139% rise in VAT lending overall since the start of 2021. This increase shows that the UK’s small business economy is well on the trajectory to post-pandemic recovery despite strong economic headwinds with rising costs and interest rates.

Firms across professional services, support services and manufacturing industries recorded the highest average VAT bill of all sectors, following a rally in business activity. With increased revenue leading to higher VAT bills, spreading the cost of these payments allows small businesses to manage their cash flow more effectively. The average size of VAT funding packages averaged at £53,000  in the first quarter of the year– which marks a 20% increase on the figure for 2020.

One of the firms benefitting from VAT lending is a legal firm based in the South West of England, which specialises in family and employment law. With court costs and fees often left pending until the conclusion of a case, the law firm benefits from VAT loans to maintain a balanced cash flow and working capital. Having worked with White Oak for almost a decade to spread the cost of its VAT bills, averaging £75,000 per quarter, this type of funding is essential to help manage their business activities.

“The nature of our work means we always have multiple cases on the go. As our payments come in ebbs and flows, we need a tailored source of funding we can rely on. One size doesn’t fit all and having the security of a flexible funding solution that caters for our specific needs has been integral to the success of our business,” said the South West firm.

While more and more businesses across all sectors are looking to alternative sources of funding, White Oak has proven itself a leader in the space, having already lent over £167m to SMEs across the country in 2023 – £101m of which was lent from its own book.  White Oak’s short-term lending offering makes up £75 million of this figure, providing businesses with rapid funding solutions to ensure they can maintain growth and manage cashflow.

White Oak is dedicated to building on this momentum throughout the year, following its pledge to lend half a billion to UK small businesses in 2023 to help them achieve their growth ambitions.

Andy Davies, Managing Director of Leases and Loans at White Oak said: “With larger VAT bills being a natural by-product of stronger business activity, the steady increase we are seeing is a clear sign that SMEs across the country are emerging resiliently from the pandemic and reviving their plans for growth. We often look at the demand for VAT lending as a barometer for overall business performance, and the latest figures show are providing us with renewed optimism.

“While we are still operating in a difficult backdrop with high interest rates and rising costs, more and more small businesses have been turning to alternative lenders to plug the financing gap. Our VAT lending offering is renowned for its quick turnaround time, ensuring SMEs across the country receive the support they need to succeed and grow when it’s needed most.”

New relationship will deepen White Oak’s connection with UK SMEs seeking funding for growth

White Oak, one of the UK’s leading non-bank lenders supporting SMEs and mid-corporates, has today announced it is partnering with the Institute of Chartered Accountants of Scotland (ICAS).

This new venture will help to expand White Oak’s relationship with the business community, providing ICAS’s 23,000 members, 3,700 CA students, and their clients with access to flexible funding solutions to support their growth ambitions.

This strategic partnership forms part of White Oak’s commitment to supporting Scottish businesses, following its recent pledge to lend £80m to SMEs across the country in 2023, as it looks to build on the momentum made in the market last year.

With an office in Glasgow, White Oak is one of the few alternative lenders offering working capital solutions to Scottish businesses from a local base. The firm is already active in the market, with Scottish loans representing 15% of White Oak’s overall lending activity last year. This figure is only set to grow throughout 2023 as White Oak becomes a trusted partner of ICAS and expands its stake in the Scottish market.

Christian Elson, Head of Strategic Origination Partnerships at White Oak UK, said: “We are pleased to announce our partnership with ICAS, which will give Scottish SMEs even better access to funding to maximise their potential in 2023. We have extensive knowledge of the Scottish market with a dedicated team on the ground and have been impressed by the business community’s drive and resilience. It’s ambition like this we are primed to support with our flexible funding solutions, and we look forward to continuing to drive momentum in the Scottish market.”

Bruce Cartwright, Chief Executive at ICAS, said: “We are delighted to partner with White Oak UK for commercial lending solutions for our members. They are a well-established organisation and will be able to provide our members from across the UK with flexible funding options. This is a great opportunity for our members to grow their business with the right support from White Oak, who will also have a dedicated account management service available for ICAS members.”

The Institute of Financial Accountants (IFA) has announced a new partnership to provide capital support for SMEs. The leading professional accountancy membership body has partnered with White Oak, one of the largest FCA regulated non-bank lenders in the UK.

The innovative agreement will enable IFA members – SME accountants – to support their clients with access to non-traditional routes of funding through White Oak’s diverse portfolio of lending products. These flexible solutions will support all aspects of SMEs’ finance needs in excess of £25,000, providing VAT, tax and working capital loans, asset and invoice finance, as well as asset-based lending.

John Edwards, CEO and Group Executive International of the Institute of Financial Accountants (IFA) said: “SMEs often struggle to secure lending via banks, so it’s important to have access to the right expertise they need through an alternative, recognised lender. Accounting practitioners who support SMEs are great advisers to businesses and need to be able to direct to alternative options, where their clients seek or require funding.

“Our new partnership with White Oak will provide members with a raft of support, advice and alternative options geared towards their clients’ specific financing requirements. Leveraging White Oak’s industry experience, stemming back almost 40 years, means we are highlighting our commitment to provide the very best support and guidance to our members, frequently tailoring policies and recommendations to meet the unique challenges and trading relationships associated with smaller business.”

He continued: “This partnership underpins our core values created to continuously meet the needs of SMEs within the UK and throughout the international market by offering a range of relevant and innovative services and benefits that have been specifically chosen as part of our focus on supporting our members within the SME/SMP sector.”

Christian Elson, Head of Strategic Origination Partnerships at White Oak UK said: “We are pleased to be partnering with the IFA and look forward to supporting even more SMEs with fast and flexible funding solutions. In uncertain times like these, SMEs need support more than ever. While other lenders have started to pull back, at White Oak, we’re committed to helping businesses fuel their ambition and reach their full growth potential, even in testing times.

“Working closely with the IFA will help us to deepen our partnerships with expert accountants across the country so they can bolster their service offering to clients and we can reach even more businesses with tailored solutions to suit their specific financing needs. We’re primed to support the IFA’s client base with the funding they need to thrive and look forward to continuing to drive growth for small businesses nationwide.”

–Ends–

About the IFA

The IFA is part of the Institute of Public Accountants (IPA) Group, the world’s largest SME-focused accountancy group, with more than 49,000 members and students in 100 countries. It is a full member of the International Federation of Accountants (IFAC) the global accounting standard-setter and regulator.

About White Oak UK

White Oak is a leading lending platform, authorised and regulated by the Financial Conduct Authority which provides capital to support SMEs and mid-corporates through an extensive suite of flexible lending solutions – including commercial loans, asset finance and invoice financing. Founded in 1986 and headquartered in Chester, UK, White Oak’s team of 170 supports over 20,000 businesses with their financing needs and holds a 4.9 Star rating on Feefo. White Oak is an affiliate of White Oak Global Advisors, a debt manager providing financing solutions for SMEs. Together with its affiliates, White Oak Global Advisors has deployed $10billion across product lines. More information can be found at https://whiteoakeurope.com/.

About White Oak Global Advisors

White Oak Global Advisors, LLC (“WOGA”) is a leading alternative debt manager specializing in originating and providing financing solutions to support small and middle market enterprises at every stage of their lifecycle. WOGA and its financing affiliates optimize capital structure based on available assets and cash flow and provide over twenty lending products to the market that include term, asset-based, and equipment loans. Since its inception in 2007, WOGA and its affiliates have deployed over $10 billion across its product lines, utilizing a hands-on, disciplined investment process that focuses on delivering risk-adjusted investment returns to investors, while establishing long-term partnerships with its borrowers. More information can be found at www.whiteoaksf.com.

White Oak, one of the UK’s leading non-bank lenders supporting SMEs and mid-corporates, has today announced it is strengthening its executive team in the UK with the appointment of a new Chief Operating Officer and Chief Financial Officer.

Melinda Crocker has been appointed Chief Operating Officer after spending over four years at the firm as its Head of UK Portfolio Management. In her new role, she will oversee operational strategy across all of White Oak’s UK business lines. Melinda brings 30 years of financial services experience to the role, including senior banking roles managing analytics, project delivery and product design.

Pawel Lo Giudice has been appointed as Chief Financial Officer, following almost two decades of experience in senior positions at global consultancy firms in the UK and Australia, where he specialised in deal advisory services. In his new role, Pawel will oversee White Oak’s UK financial strategy, driving the firm’s commitment to support SME’s and mid-corporates across the country with tailored finance solutions to help them grow.

The two new additions to White Oak’s senior team come as the firm targets its biggest year for growth yet, following a record 2022. The lender recently pledged to provide half a billion pounds to UK SMEs and mid-corporates over 2023, as part of its commitment to help firms up and down the country fulfil their ambitions.

Melinda Crocker, Chief Operating Officer of White Oak UK said, “Since joining White Oak four years ago, I’ve been impressed by the ethos that drives the business and the wide breadth of support we provide to firms. I’m looking forward to pushing our vision for growth in my new role and putting strategies in place to ensure we can support our growth ambitions.”

Pawel Lo Giudice, Chief Financial Officer of White Oak UK said, “I’m excited to build upon White Oak’s growing momentum. In a challenging year for businesses up and down the country, White Oak’s finance solutions have helped their clients to thrive, and I’m delighted to be part of a firm which is focused on the growth ambitions of SMEs in the UK.”

Jean-Marc Torre, CEO of White Oak UK, said, “I am delighted that Melinda and Pawel are joining our executive leadership team. With Melinda’s outstanding portfolio management experience and Pawel’s deep knowledge of corporate finance, we will continue to improve the agility required to grow in the current landscape and better provide capital financing solutions to our customers.”

White Oak, one of the UK’s leading non-bank lenders, has provided recycling specialist Glazewing with a £712,000 asset-backed finance facility to support the purchase of new, efficiency boosting equipment upgrades, to help the business meet increasing demand.

As one of the leading metal recyclers in the East of England, Glazewing collects and disposes of unwanted metal, including end-of-life vehicles and scrap from demolition sites, which it then recycles and sells to customers in the UK and overseas.

The asset finance package provided by White Oak has enabled Glazewing to acquire two Liebherr LH40 17m machines – the world’s first in that specification – which enables quicker container loading for export, whilst reducing fuel consumption. The new machinery will enable the business to increase its loading capability by 20%, in line with a recent uplift in demand for its scrap metal product. 

Having partnered with White Oak for over a year, Glazewing is already targeting further growth in 2023, with an additional £1m credit line facility in the pipeline to enable the business to ramp up its commercial vehicle and machinery upgrade plans.  

This funding package rounds off a strong year for White Oak, which lent £465m over the course of 2022, a record that the firm plans to expand on after pledging £500m to support SME business growth in 2023. White Oak provides support to SMEs and mid-corporates through a range of funding options, including asset finance, invoice finance and working capital loans across all sectors and regions in the UK.  The construction sector made up 15% of the firm’s portfolio in 2022, assisting companies like Glazewing with their growth plans.

Jason Minns, Director at Glazewing Limited commented: “With an uplift in demand for our recycling services, it was vital to be equipped with more efficient machinery to enable us to process metal at a faster and more energy efficient rate. Investing in new machinery gives us the capacity to recycle more metal and make our processes even more efficient for customers, and we already have exciting plans underway in the new year to help us further expand our business.”

Andy Davies, Director of Sales at White Oak commented:  “In partnering with Glazewing, we have been able to provide tailored funding solutions so the business can pursue its ambitious expansion strategy. For Glazewing, this latest funding facility and the £1m in hire purchase facility earmarked for 2023 will give the business the firepower it needs to drive its growth plans. We are committed to backing companies like Glazewing in 2023 and beyond – believing in the strong underlying potential of UK SMEs, despite economic headwinds.”

• This follows a record year for White Oak UK, which lent £465m in 2022
• Last year saw 2000 new customers partner with lender, a 20% uplift year-on-year

[Chester 18 January] White Oak UK (“White Oak” and “the firm”), one of the UK’s leading non-bank lenders, has pledged to provide £500m to UK SMEs and mid-corporates in 2023, as it continues to support the growth plans of small and medium sized firms across the UK. 

The pledge follows the firm delivering a record £465m of funding in 2022; businesses in London and the South East had the greatest demand for funding (32%), closely followed by the North of England (20%) and Scotland (15%).

White Oak supports businesses with a range of funding products to suit their financing needs. Tax lending – including VAT finance – assisted 1,300 clients with the spread of the cost of their tax bill over 12 months and reached a value of £200m over the year, with the firm able to approve 90% of professional customers who applied for loans. Asset based lending meanwhile reached £175m, accounting for 40% of total White Oak loans. The firm is looking to target tax lending of £225m and asset based lending of £200m through 2023.

White Oak data from 2022 shows that the professional services sector saw the largest funding allocation, reaching a total of £110m, which equates to 25% of White Oak’s lending book for the year, followed by the construction sector, reaching £65m, which is 15% of the firm’s annual lending total.

White Oak UK, an affiliate of White Oak Global Advisors, LLC, provides business loans, asset finance and asset-based lending solutions to help drive growth for SMEs and mid-corporates in the UK; through 2022, the firm attracted over 2,000 new clients.

Jean-Marc Torre, CEO of White Oak UK, said: “Despite economic headwinds, 2022 showed that there is demand for capital from businesses, which remain laser-focused on their long-term growth plans. Time and time again, SMEs and mid-corporates have showed that they are resilient and agile and with the right support, we expect UK firms will be well-positioned to push forward with their expansion plans which is why we’re upping our lending totals for this year.” 

Andy Davies, Managing Director of White Oak Leases & Loans, said: “Our 2022 lending figures show a strong spread of uptake for growth capital across all sectors and regions of the UK, from both existing and new clients. While some funding partners pull back support in more testing economic times, we are well-positioned to be able to provide flexible solutions to fuel the growth plans of businesses, which is why we’re pledging to provide half a billion to firms up and down the country in 2023.”

White Oak, one of the UK’s leading non-bank lenders, has announced it has provided over £125m of funding to UK SMEs and mid-corporates during Q3, a record for the firm. It includes a remarkably strong September, which saw White Oak place £44m on their own book. This brings its total value funded year to date to £280m.

Professional services (29%), construction (14%) and administrative and support services (12%) were the sectors driving most of the demand for capital in the third quarter of the year.

White Oak, which has an own book value in excess of £500m, also provided a record £30m in asset finance lending in Q3, with firms in administrative and support service activities (21%) and construction (19%) showing the most appetite to invest for growth.

The £125m allocated in Q3 was used to support SMEs and mid-corporates across all UK regions, with the highest volume of lending activity in London (16%), Scotland (14%) and the North-East (13%).

The firm, an affiliate of White Oak Global Advisors, provides business loans, asset finance and asset-based lending solutions to help drive growth for SMEs and mid-corporates across the UK.

Jean-Marc Torre, CEO of White Oak in the UK, said: “When navigating a more challenging economic backdrop, businesses will often put the brakes on investing in their operations in favour of sitting tight with the hope brighter times are ahead. However, often it’s those that double down in more testing times that achieve great things. The robust growth plans we are seeing amongst our lending book is a testament to how resilient UK businesses really are, and we are committed to supporting them through their growth journey whatever the weather.”

Andy Davies, Managing Director of White Oak Leases & Loans, said: “It’s heartening to see a strong appetite from SMEs and mid-corporates looking to access capital to fuel their growth plans, in spite of operating in a challenging economy. What makes White Oak different is our ability to be nimble and support our clients’ needs quickly and effectively, and our Q3 results show we are committed to doing just that.”