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Accelerated Payments gets €20m debt line from UK asset manager

 

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'The current deal managed by Channel will grow to a €50m programme and will support AP's business users over the next year.' (stock photo)

'The current deal managed by Channel will grow to a €50m programme and will support AP's business users over the next year.' (stock photo)

'The current deal managed by Channel will grow to a €50m programme and will support AP's business users over the next year.' (stock photo)

Accelerated Payments (AP), an invoice-financing company headquartered in Dublin, has secured a €20m senior debt line arranged by UK asset manager Channel Capital Advisors as it prepares for expansion.

The company, which counts financier Conor Sheahan as a board member, plans on growing its loan book from around €25m to €50m over the next six months. It is also planning to boost its services in the UK, Europe and in North America, where it has a base in Canada.

AP's deal with Channel more than doubles its invoice-financing capability for clients and will help to facilitate its growth and expansion into Europe. It will also offer additional funds for its SME client base in Ireland and the UK, as they continue to cope with the business and economic challenges associated with Covid-19.

The current deal managed by Channel will grow to a €50m programme and will support AP's business users over the next year. The asset manager will also provide program management and monitoring services.

Speaking with the Sunday Independent, Ian Duffy, chief executive of Accelerated Payments, said the deal with Channel was a "big milestone".

"I think one of the concerns any long-term funder has is the ability to deal with a change in an economic cycle," he said. "We now definitely have one of those.

"It is a massive vote of confidence, and we are very excited about that.

"I wouldn't have wished to have had Covid, but one of the positive side effects of it is that it has proven our credit model, and we secured this funding off the back of it."

Duffy said the company had "very little" impairment over the Covid period. He noted AP's financing would be focussed on areas of the economy where it thinks demand for working capital will grow such as IT, manufacturing and food processing.

AP also has plans to enter the US in 2021.

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"We are starting to talk to various partner banks," said Duffy. "We think that it is a model that has worked over the past 12 months."

Duffy hopes to drive the business to a book of over €100m by the end of next year. He has around 23 employees and hopes to grow this number to about 35 with the vast majority based in Ireland.

"It's been a tough eight months for everyone trying to work through this, pandemics are new to all of us," he said. "Some have been affected negatively, some positively.

"We are pretty positive about the next 12 months. Covid is going to be prevalent, but some sectors will continue to grow, and we want to support those sectors."


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