EnSilica funds the design and supply of silicon chips for customers and then takes a share of the revenues once the chip design is proven. Due to the nature of this business model, there is a gap between design and sales.
The company needed additional funding to allow it to take on more orders in the interim, yet it found access to secured lending an issue because its business is based on intangible assets, such as intellectual property.
Mark Hodgkins, Chairman of EnSilica, commented, “Caple has an innovative and flexible service that removes the need for some privately held UK SMEs to finance their growth by equity funding and giving up value in their business. I would recommend Caple to like-minded growth companies, who are looking for an efficient and quick decision on funding for growth.”
Caple offers SMEs unsecured lending based on the future cash flow, requiring no collateral or personal guarantees as security. The company adds that its loans can be combined with existing bank lending, so firms can have access to more funding than they would get from their bank alone.
Colin Burns, director, Shaw & Co, who advised EnSilica added, “We worked closely with the EnSilica management team to arrange this flexible and affordable funding package and which is highly-suited to the company’s medium-term goals. Now that EnSilica is well capitalised for the next stage of its journey, I’m excited to watch it develop into a major player in its chosen markets. We are grateful to the team at Caple for their diligent yet expedient approach throughout this transaction, which completed in 10 weeks from initial discussion.”
EnSilica will use these funds to continue its expansion into high-growth sectors including automotive, space and the Internet of Things (IoT).
