Against a backdrop of increasing structural pressures and changing consumer behaviour, traditional lenders have become more cautious and selective in their approach to the retail sector. Likewise a growing number of retailers are also looking to reduce their dependence on banks. The combined result is the emergence of non-bank lending in retail. By 2021, we expect credit funds to account for up to 5% of UK retailer debt with that figure slightly higher in Germany.
Alteri provides asset backed finance to retailers. We adopt a flexible approach, centred on providing a tailored solution to meet individual borrowers’ needs. This could be as part of a refinancing to replace an existing lender or additional financing to an existing debt structure.
We are able to put together senior debt, second lien, revolving credit facilities as well as structured equity financing. Loans can be secured against inventory, accounts receivable, plant and machinery and property but also against brands and even ROT risk. Typically, we would provide facilities of £10-20 million although larger lends are possible with co-investment from funds managed by our partner Apollo Global Management, LLC.
We adopt a flexible approach, centred on providing a tailored solution to meet individual borrowers’ needs.