A – Highest rating assigned by Paper Street. The borrower’s capacity to meet its financial commitments is very strong, as evidenced by higher than average DSCR, low leverage, positive cash flow position, and positive historical operating and financial performance and track record.
B – Second highest rating. The borrower’s capacity to meet its financial commitments is strong. This rating is derived through an average level of DSCR, low leverage, positive cash flow position and positive historical operating and financial performance and track record.
C – The borrower is somewhat more susceptible to effects of changes in circumstances and economic conditions than obligations in higher rated categories. However, the company’s capacity to meet its financial obligations is still strong.
D – The rating reflects an adequate level of protection. However, adverse economic conditions, or changing circumstances are more likely to lead to a weakened capacity of the borrower to meet its financial commitment to the obligation.
E – The rating reflects significant speculative characteristics. While such borrowers will likely have some quality and protective characteristics, these may be outweighed by large uncertainties with regards to the future financial and operating performance of the borrower.
Working Capital Loan: £75,000
Loan Term: 1 year
Interest rate: 10.50% per annum
Interest payments: Quarterly
Principal repayment: Repayable in full at the end of 12 months
• 100% secured by way of floating charge on assets
• Personal Guarantee from CRG Managing Director
What is the purpose of the loan?
CRG experience year on year growth due to the nature of the high volume of Central Government and Local Government contracts that are awarded annually and have a 3 – 5 year term, via tender submissions with a success rate of c. 65%. On average CRG are successful on 12+ contracts per annum which requires at least 3 to 4 branches to be opened each year to service the contracts. The purpose of the loan is to support working capital to continue this year on year growth at an increased pace securing further market share.
Please note that lending to small businesses puts your capital at risk.
What products or services do you provide?
We focus on healthcare service provision and temporary placements and this currently accounts for 100% of revenue. However, plans are in place to organically grow the permanent healthcare staffing, temporary & permanent non-healthcare staffing divisions and new healthcare services markets.
Our services include the provision of healthcare and medical staff such as: all grades of Allied Health Professionals (AHP’s) for example Physio’s & Occupational Therapists, General Practitioner Locums (GP’s), Medical Locums, Theatre Nurses, Operating Department Practitioners (ODP’s), Nurses of all grades & specialties, Health Care Assistants (HCA’s), Support Workers, Community Care Assistants, Care Workers, Dentists, Health Sciences Services Staff (HSS) e.g. Pharmacists & Pharmacy Technicians, Adults and Children’s Homecare Services.
Who are your main customers?
We are an approved Nationwide Framework Agreement Provider for the following, however, this is not an exhaustive list:
- Government Procurement Service (GPS) (formerly OGC Buying Solutions and NHS Purchasing Supply Agency)
- London Procurement Programme (LPP) and Health Trust Europe (HTE)
- Ministry of Defence (MoD)
- Local Authorities
- Ramsay Healthcare
- General Healthcare Group including BMI Healthcare
- Nuffield Hospitals
- Spire Healthcare
- HC1 (formerly Southern Cross Healthcare)
Who are your main suppliers?
As CRG are a people led service business our main suppliers are our candidates and people, we have very few suppliers. Major suppliers are our IT and Communications suppliers Claranet, Bond Adapt, Daxtra, Webroster, Datalibrium and BT.
Where do you see your business in the future?
CRG’s strategy is to further develop its current service offerings in additional geographical areas of the UK utilising its current branch network i.e. nursing services into the South or Social Care from the East Midlands to the North East. In addition to this expanding our future branch network through contract successes at the rate of 6 - 8 branches per year.
To ultimately diversify its healthcare recruitment and healthcare services provision further in the areas listed below to become a leading top 10 provider for healthcare recruitment and healthcare services provision.
- Specialist Homecare services
- Social Care recruitment and services
- Forensic Medical Examiners and Sexual Offender Medical Examiners
- Locum services to prisons and secure services
- Healthcare service provision to prisons and secure services
- Occupational Health Services to the Public and Private Sector
Additionally to the healthcare recruitment and healthcare services provided CRG will further develop its current non-healthcare recruitment services through CRG Resourcing in additional geographical areas of the UK utilising its current and future branch network providing the ability to provide Public Sector, Quasi Government Bodies and the Private Sector with a managed service offering for the provision of general recruitment services through contract successes.
Listed below is a financial summary based on indicators we consider as being vital to our risk assessment methodology. This is by no means, an exhaustive set of indicators. Our due diligence process takes into account a number of different quantitative and qualitative parameters.
CRG’s DSCR is 0.89 as of March, 2014. The projected DSCR is 2.23 as of March 2015, and 9.47 as of March, 2016.
DSCR as of March, 2014
EBIT assumed at £959,855 for the 15 months leading up-to March, 2014
Interest expenses assumed at £451,694 for the 15 months leading up-to March, 2014
Short Term Debt assumed at £632,666 for the 15 months leading up-to March, 2014
DSCR as of Dec, 2016 of 9.47. This is based on the Sept, 2013 management accounts, which assumes the existing debt as being fully paid off by 2016. On assuming the Paper Street funding of £250,000, the DSCR still comes out at 4.63.
Your investment through the Paper Street platform involves direct lending to micro, small and medium sized companies, hence your investment capital is at risk. Paper Street is authorised and regulated by the Financial Conduct Authority under Interim Permission. Paper Street is not covered by the Financial Services Compensation Scheme. Paper Street Funding Ltd. is a company registered in England and Wales (Company No. 8165485) with registered office at 1708 Strata Building, 8 Walworth Road, London SE1 6EG. Paper Street is licensed by the OFT (license no. 660212); registered with the Information Commissioner's Office (Reg no. ZA021759)