The alternative finance provider eCapital Corp announced this week that has acquired United Kingdom based specialty lender Advantedge Commercial Finance, expanding the US based company’s presence to the UK market. Advantedge was privately owned and focused on financing and providing cash flow solutions to small and medium size companies specifically in the United Kingdom. The company said it presently has five regional offices in Thames Valley, Newport, The Midlands, Manchester and Glasgow and is profitable, according to reports.
Marius Silvasan, CEO of eCapital Corp, explained why eCapital went through with the transaction. “This acquisition marks yet another milestone in the growth trajectory of our company,” he said. "Advantedge has significant depth and breadth of experience in the factoring sector, specifically servicing small to midsize businesses with alternative lending solutions. As such, they are complementary to our business model, and we look forward to integrating their team and bringing our full suite of products to their client base.” The acquisition also expands its services.
eCapital is a leading North American alternative finance provider providing small and mid-size businesses with the working capital. It offers a full suite of services including factoring and asset-based lending, and provides ongoing customer support to clients through industry-leading automated technology. “Advantedge has developed a strong reputation as a leading independent finance provider offering best-in-class client service,” said David Tilling, CEO of Advantedge. “I am confident that joining the eCapital family is the right move for our company and our clients.”
Ares Management helped provide capital for the acquisition, as the firm had in past acquisitions by eCapital Corp. Alternative financial solutions will continue to compete with regional and global banks for small and midsize business financing. Businesses still traditionally look for local banks for lending, so digital marketing is key for companies such as eCapital.
Additionally, scale with acquisitions such as this also help increase credibility to companies looking for alternative financing.