Finance firm Got Capital has stopped providing loans to “at risk” business sectors including convenience stores, while a senior figure claimed the company had “suspended all ongoing operations.”

Kobi Ben Meir, director of marketing first revealed issues at the firm stating: “As a result of the drastic impact on small businesses, my main role in Yalber & Got Capital is on hold for the time being as the company suspended all ongoing operations.”

Unlike other lenders, Got Capital provides independent businesses with quick financing of up to £100,000 in return for a revenue share until the loan is paid. Sources close to the company said the model meant the company was hard hit by the impact of the coronavirus on its clients’ businesses.  The sources said a lot of clients had requested payment holidays. one said the firm would have to make “a lot of concessions”.

They also claimed the challenging environment had led Got Capital to stop lending to sectors classed as “at risk” including independent convenience stores and foodservice outlets. “Some may do well, but others less so. It’s hard to say at the moment,” one explained

When approached by betterRetailing.com, Got Capital managing director Alex Afek strenuously denied the firm had stopped trading and said that the company’s staff were working from home.

The company’s annual accounts for 2019, published last December show as of July 2019 it had more than £3m listed as “future income streams receivable”. The figure represents an increase of more than 25% year on year. Meanwhile, the amount the firm owed to banks rose from nearly £130,000 to £1.3m in the same period.

The firm’s finance arrangements often help those independent retailers that have been turned down by other lenders. Giving an example, Afek previously told betterRetailing: “A newsagent contacted us after several banks and funding companies denied him finance. He had only just started his business and had a below average credit score.

“After speaking with him and looking at his sales to date, we saw an opportunity to invest in a passionate business owner and we approved a £10,000 investment that was funded on the same day.”

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