Daily News: May 29, 2012

Money Advice Group Closes £10 Million ABL With PNC

Money Advice Group, one of the UK’s leading financial solutions companies, is embarking on a comprehensive growth strategy after securing an asset-based lending facility worth £10 million, with PNC Business Credit.

In conjunction with, Dow Schofield Watts, Money Advice Group negotiated the credit facility to enable continued growth through a combination of working capital funding and finance for acquisitions.

Boasting a solid ten-year heritage, Money Advice Group currently holds approximately 8% market share of the fee charging financial solutions industry, with a turnover of £15million. Handling £250million of consumer debt, the financial solutions company has 28,000 clients that it hopes to grow by a third, with the help of the cash reserve from PNC.

Money Advice Group’s proactive stance has allowed it to anticipate this shift in the debt management industry, and prior to its partnership with PNC, had self-funded an exercise in acquiring a small player exiting the market. The success of such a venture was the catalyst for its ambitious plans for growth and prompted the discussions with PNC to facilitate an acquisitions strategy.

The agreement with PNC is part of Money Advice Group’s overall expansion plans, which will see it take on an additional 3,500 feet of office space within its existing premises, and boost its workforce with several new appointments within the management and client services teams. Money Advice Group has already recruited 60 members of staff in order to facilitate expansion, bringing the company workforce to 285.

Simon Brown, managing director, Money Advice Group commented: “Our decision to work with PNC stemmed from its reputation in this arena, and its innovative approach to facilities based on loan to value rations against specific assets. This offered a more substantial funding line, enabling us to take advantage of the opportunities in the industry – specifically acquiring both medium-sized and large competitors, and to expand into new markets. We have ambitious plans for expansion and growth, and the partnership with PNC has assisted us in realizing these plans. We look forward to continuing the working relationship with PNC Business Credit.”

Mark Shackleton, PNC Business Credit, said: “Money Advice Group has the infrastructure, industry knowledge and experience to facilitate steady growth through acquisition. There is a clear strategy to grow the business and we are pleased to be adding Money Advice Group to our growing portfolio of clients”.