Mastering the Maze: A guide to Special Situations Finance | Part 2 Swift Decisions and Industry Expertise

Series Introduction

This is the second instalment of our series Mastering the Maze: A Guide to Special Situations Finance. In this post we focus on what differentiates Hermes Capital from other financing options: our ability to make fast decisions and our deep understanding of specific industries, such as construction and mining services.

Agility in Decision-Making

Unlike traditional financial institutions, Hermes Capital thrives on flexibility and rapid response. Of course Hermes is not unique in claiming “flexibility and speed”- so what is unique about Hermes proving this claim where others can not?

Firstly, Hermes has a unique non-institutional investor base. This gives Hermes independence in applying commercial common sense to its credit decisions.

Secondly, Hermes is a small team with specialised and deep experience in providing asset based credit facilities to SMEs in special situations. It has a flat management structure and this – coupled with Hermes unique expertise allows capital to be deployed via optimal deal structures swiftly.

Hermes’ operational independence allows us to assess and act on financing opportunities with unmatched speed. This agility is crucial for businesses in special situations, where time-sensitive challenges require immediate solutions

Success Through Speed: A Case Study

Consider the case of a construction contractor facing legal action from the ATO over unpaid taxes. With a looming court date and no banking support due to its brief history and rapid growth, the contractor turned to Hermes Capital. We quickly structured a solution that cleared their tax arrears and provided additional funding for growth, all secured against their debtors and unencumbered vehicles and equipment. This swift intervention not only saved the business but also supported its future expansion.

Industry Specialization

Our expertise extends beyond finance. Industries like construction and mining services operate on progress claims, which carry inherent risks. Hermes Capital’s specialized knowledge in these areas allows us to confidently fund against progress claims, offering solutions where others see barriers. This understanding ensures we provide more than just financing; we offer a partnership grounded in industry insight.

Looking Forward

Hermes Capital’s unique value proposition lies in our swift decision-making and specialized industry knowledge, enabling us to support businesses through critical moments and beyond.

Join us in our next post, where we’ll explore the synergy of combining invoice finance with asset-based loans, creating comprehensive solutions for SMEs facing diverse financial challenges.

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