Our Stakeholders

We believe that, to maximise value and secure our long-term success, we must take account of what is important to our key stakeholders. This is best achieved through proactive and effective engagement.

s172 Companies Act 2006

We set out below our key stakeholder groups, their material issues and how we engage with them.

Each stakeholder group requires a tailored engagement approach to foster effective and mutually beneficial relationships.

By understanding our stakeholders, we can factor into Boardroom discussions the potential impact of our decisions on each stakeholder group and consider their needs and concerns, in accordance with s172 of the Companies Act 2006. This in turn ensures we continue to provide loan facilities, work effectively with our colleagues and customers, make a positive contribution and achieve long-term sustainable returns for our investors.

Lenders

The business has two principal investor sources, corporate investors, and individuals.

The corporate investors are secured by way of contractual loans and debentures against the assets of the business. The individual investors hold non-voting redeemable preference shares by way of security. The business could not survive without the faith, co-operation, and investment from its investors. The business enjoys good personal relations with all investors who are the backbone of the business, and they enjoy a flexible working relationship with the business. The business displays an understanding and considered approach, illustrated by the directors speaking personally to each investor on a regular basis. The business ensures that each month the Board considers a payment of a dividend to the individual investors as a priority, to date no such dividend recommendation has been rejected by a general meeting of the business.

Borrowers

The continued strong performance of our business would not be possible without understanding our borrowers’ needs and future aspirations. Our borrowers have moved within our portfolio as their businesses have grown, this is a testament to our proactive approach. To this end we work closely with our borrowers and are prepared to offer “bespoke solutions” on an ongoing basis, which may include working with borrowers to make suggestions as to how they tailor their individual lending to their own customers.

Employees

We have an experienced, diverse and dedicated workforce which we recognise as a key asset of our business. Therefore, it is important that we continue to create the right environment to encourage and create opportunities for individuals and teams to realise their potential. To this end we ensure a personal relationship with our employees ensuring agile working patterns and opportunity to share ideas and make a difference through diversity and inclusion.

Suppliers

It is crucial that we develop strong working relationships with our suppliers, so we can enhance the efficiency of our business and create value. We seek long-term partnerships, a collaborative approach, open terms of business, and fair payment terms.

Shareholders

Our shareholders play an important role in monitoring and safeguarding the governance of the business via general meetings. General meetings of the business are called monthly by the directors. The voting shareholders are also directors of the business and other companies; they therefore have substantial interests and knowledge of the business environment and ensure financial performance, strategy and business modelling, and consideration of environmental, social and corporate governance.

Additionally our voting Shareholders require:

• the use of only necessary resources (e.g. printing documents only when necessary);

• recycling used materials and equipment;

• avoidance of non-essential travel (e.g. many attendances at board meetings are “virtual”),

• maintenance of a “virtual” office with a legal address;

• that the business has first-hand contact with its customers;

• that principal decisions within the business are taken only after consideration of the ultimate business efficacy has taken place (e.g. the business will only borrow those sums that it knows it can lend to its customer, which in turn lends to the ultimate borrowers, with consideration being given to what that customer will use its borrowing for and how it may impact upon it and possibly the wider community);

• a commitment to be open, flexible and even in discussions with all stakeholders in the business.

By these principles the Directors believe the business demonstrates its commitment to the environment, the community and the company’s reputation for high standards of business conduct. The Directors believe by the above actions and principles they have complied with the principles set out in section 172 (1) of the Companies Act 2006.