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Q3 2020 Update

Our Series A fundraise, new members join the team and our world-beating tech.

- 2 NOV 2020

Q3 2020 update image

Highlights

  • Bridge Round fundraise, to extend our cash runway, over-subscribed at 420% of minimum target
  • Regulatory capital the only outstanding threshold condition for the banking licence
  • Series A raise progressing well with over 60% subscriptions received
  • B-North’s Origination Lending Technology platform, ‘BOLT’ is built
  • Manchester Pod team assembled ahead of launch
  • Sue Murdoch appointed as HR Director
  • Chairman, Ron Emerson CBE, was interviewed by The Times to discuss B-North’s strong position in the current market

Re-cap: Our unique proposition

  • UK-wide local delivery – Regional Pods (local banks) for SME focus and face-to-face relationships
  • Secured Loans – £0.5m-£5.0m tailored to the specific needs of the borrower. Front-line bankers, underwriters and valuers support more flexible finance proposals
  • Delivered with speed – providing secured finance decision making and lending up to 10 times faster than the market standard for traditional banks
  • Embracing the broker channel – our model will ensure B-North is the preferred partner for high quality brokers
  • Competitively priced – banking model delivers access to low-cost funding
  • Banking licence – threshold conditions met subject to Series A capital raise

 

Bank licence & Funding

  • Bank licence

Regulatory capital is the only outstanding threshold condition for securing our banking licence. This will be secured via our £20m Series A raise. Once commitments are in placewe will submit the relevant information to the regulators to obtain investor approval.

  • Bridge round

Our Bridge round has been a huge success with commitments of over £2.1m –420% of our minimum target of £500k. The Bridge round has extended our cash runway beyond Q1, 2021 to enable the completion of the Series A round and the Banking Licence process. The Bridge round will be closing shortly, click here to view the Investment Memorandum.

  • Series A fundraising

The Series A raise is progressing well with high quality institutional investors with subscriptions received to date totalling£12.75m, 64% of target. We aim to secure the remaining commitments in the coming weeks prior to sharing details with the Regulators for their approval.

 

Jonathan Thompson, CEO, said

“The momentum of our Series A round has really gathered pace during Q3 and I am delighted that the B-North proposition is attracting very high-quality institutional investors.”

 

Technology & Operations

  • B-North Origination and Lending Technology platform

BOLT was designed in collaboration with Commercial Finance Brokers, some of whom have invested in the business, and the go-to-market build is complete.

  • Wider IT system build

The build of our deposit-taking platform has also been completed in conjunction with our outsourced partner, Newcastle Strategic Solutions Limited. Both systems are being subjected to ‘end to end’ testing in advance of go live.

Selection of the real estate data tools that will assist our Pod valuers is close. These will enhance the speed, accuracy and transparency of our valuations.

  • Manchester Pod

Recruitment of our Manchester Pod is nearing completion. Alongside this, we continue to build relations with the Brokers who will comprise our initial panel at the start of lending activities.

 

Ewan Hutton, CTO

“The feedback we have received is that our B-North Origination and Lending Technology platform (BOLT) is light years ahead of the competition both in functionality and integration.”

 

Team & Press coverage

  • Further development of the team

We are delighted that Sue Murdoch has joined B-North as HR Director. Sue started her career at Yorkshire Bank and has extensive experience of leading HR teams in Financial Services and Banking as well as Professional Services and Telecommunications. Her most recent position was HR Director at KCOM PLC.

Sue Murdoch, HR Director

“I am thrilled to be joining B-North as their HR Director; this is an inspiring story and an exciting proposition with an outstanding team, and for me a great opportunity to build a HR function that will attract great people to a great business.”

More broadly, we continue to strengthen the team with a large number of high-calibre recruits lined up to join when the banking licence has been secured.

  • Press coverage

In August our Chairman, Ron Emerson, was interviewed by The Times which resulted in a double page spread. Ron discussed the challenges of the current market and the impact this will continue to have on SMEs when small business lending was already an orphaned area. Ron believes the Covid-19 pandemic has led to a new focus on an underserved sector and B-North is exactly what SMEs need at a time when they have never needed the support more. Click here to read the article in full.

The Times interview with Ron Emerson...

Bridging & Commercial: How to choose your broker...

The Business Desk: B-North partners with WiserFunding...

BusinessLive: SME lending provider raises further £1m...

Fintech Futures: B-North raises £1m...