Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 24 Jun

  Growth Street Alternative Refinancing Funding Sources

  

  Growth Street Exchange Limited were one of the more recent funders to be added to the UK list of invoice finance companies (with a product named GrowthLine). However, the group also offered business loans.

  An article in The Times (22/06/20) reported that Growth Street Limited have given small firms 3 months in which to repay their loans or seek refinancing. Badly timed news in view of the economic issues we are all suffering in the wake of the pandemic.

  If you have been asked to repay your finance by Growth Street (or any other lender for that matter), there may be other refinancing facilities available, either via an alternative business loan or an alternative invoice finance company. Even if the Growth Street Borrower Action Group has not managed to find you refinancing, there may still be other options for you.

  SEEK REFINANCING NOW

  Growth Street Demand SMEs Repay Their Loans

  A visit to the Growth Street website shows a message that says "Please note: We are currently in a Resolution Event and are therefore not accepting any new investors or any deposits from existing investors . . . If you are an existing Growth Street borrower, please contact your Relationship Manager for more information."

  Financial Position

  A report in Altfi recently suggested that losses may have deepened in 2019 to £1.86M and that a "liquidity event" occurred a few months back. A quick look at the financial accounts (for the year ending 31/12/19), filed at Companies House for Growth Street Limited, show net current liabilities of £13.1M - a severely illiquid position. Notes in the accounts point to its reliance upon Growth Street Holdings Ltd for ongoing support.

  The accounts for the same period for Growth Street Exchange Limited show net current liabilities of £2.96M and a reduction in the profit and loss reserves, over the year, of £1.87M. When you look at the same accounting period for Growth Street Holdings Limited (GSH), it shows net current assets of £16M, which sounds reassuring until you dig into the notes which show that to include amounts owed by group companies. Specifically, £13.7M is owed by Growth Street Limited and £3M, is owed by Growth Street Exchange. GSH recorded a reduction in profit and loss reserves for the period of £1.26M. All the group accounts cite concerns over COVID-19 creating uncertainty, and dominating the economic climate.

  By Glenn Blackman