Introducing secured lending

We are seeing an increasing demand for debt based finance solutions, from companies that are mature enough to service such finance and don’t wish to give away expensive equity and dilute their existing shareholders. This represents an excellent opportunity for lenders to achieve above average returns with a defined exit or return on capital.

Loan amounts start from £500,000 upwards, with minimum individual commitments of £50,000-£100,000 typically over one, two or three year terms. Our loan opportunities are not from start-ups, are always secured and have interest rates between 8% and 12% per annum. All lending opportunities have been carefully vetted by our in-house credit team and come with a full credit report.

Little Orbit Europe

Our latest deal is for a company called Little Orbit Europe, a worldwide video games publisher focussed on premium branded family entertainment from studios such as Mattel, Walt Disney and DreamWorks. They have operations in North America and Europe and have published games on all gaming platforms, generating global revenues of US$24m with profits of US$1.3m in 2014.. Their strategy is to develop low risk, top branded games, sold through large global distributors such as Bandai Namco in Europe, who provide contracted financial guarantees and minimum sales volumes in advance. In this way full costs are recovered at the release of each product.

Little Orbit Europe is based in London, and is looking to raise a secured loan for £1M (US$1.5M) over 12 months to ease their cash flow through the development cycle of two new games. These are the latest versions of Barbie and Monster High, two of the top grossing titles from Mattel. They have already produced 3 earlier versions of the same two Mattel titles, generating £8m in revenues and £1.8m profit.

A 12% coupon is offered, payable quarterly with a bullet repayment of the principle loan capital after 12 months. A minimum individual investment of £50,000 is sought. A royalty bonus of 5% of net profits in both the Company’s new game titles is included, as an additional incentive for lenders investing a minimum of £100,000.

If you are interested and would like to learn more, please click here, or email Duncan Morrison (duncan.morrison@ruffena.com) or Mark Bunting (mark.bunting@ruffena.com)