Meet the lender – Tom O’Dell from Praetura Commercial Finance

Latest in our meet the lender series: we caught up with Tom O’Dell, sales director at Praetura Commercial Finance, to hear his views on the market, why cash flow headroom matters  and what sets Praetura apart from other funders

What trends are you currently seeing in the market?

In the current market, we are seeing deal timelines continuing to elongate. Capacity in the market for survey and valuation is a challenge and, in particular, change of ownership deals (MBO, MBI, etc) just seem to take longer to get done.  More widely, the market tends to be cyclical  but one stand-out theme over the last 12 months is some of the ABL market stepping back or stepping out completely.  At Praetura, we have built our business on the back of taking a long-term approach  and because of this, we continue to have a strong appetite to help fund UK SMEs.

What advice would you give to businesses seeking financing for the first time?

One word sums this up – prepare. Companies often search for funding on the back of poor-quality performance. By this, I mean that information is hard to digest or just plain inaccurate. The contents are important  but presentation and reliability of the information are the key factors.  Often, using an adviser can help with this, as they are used to presenting the same information in a format that lenders can access easily.  Headroom in cash flow is the single most powerful tool to enable opportunities to be grasped. It can be the antidote to unforeseen cash flow pressures and provides both options and opportunities. I cover this in more detail in an article entitled “Headroom brings financial freedom”.

Do you foresee the lending market changing in the next few years?

We live in an uncertain world. Whilst various government schemes were led by the clearing banks during the pandemic, these traditional lenders have struggled to support the UK’s SMEs in the years following. As uncertainty has built, with a war in Europe and a change of leadership in the White House, lenders like Praetura are well placed to step in. We offer many of the lending options that the clearing banks do  but we can look through the detail to support where others might say no.

There is also lots of talk of AI stepping into finance  and I think there is likely to be some impact here, in particular with more data-driven research. However, given our processes at Praetura and our structure when it comes to making decisions on funding, I don’t see a time where we use AI to underwrite. At Praetura, our people are our most important differentiator.

What motivates you personally in your work as a lender?

The greatest satisfaction available to us as a lender is stepping up where others have stepped back. It’s easy to say no. However, finding a way to say yes, within a structure that works for everyone, is why I do what I do.

How long have you been working with Evolve Business Finance  and how has the partnership benefited your business?

Praetura have been involved with Stefan and the team at Evolve Business Finance from the start. It’s great to be able to support clients that need a flexible funding solution.

Can you share something about yourself that people might be surprised to learn?

I share my name with a famous singer. He helped me get the best table bookings. Unfortunately, the meet-and-greeter is usually not as impressed by my ABL knowledge!

What sets Praetura apart from other funders?

Praetura was founded by entrepreneurs  and that entrepreneurial approach is evident throughout everything we do. We are empathetic and understand that businesses and their advisers need funders who will be prompt and transparent. We won’t leave you waiting for a credit committee to meet in a week or a month. Instead, we will get the senior decision makers involved as quickly as we can, with sales directors able to rely on many years of industry knowledge to answer questions and drive deals through. When working with Praetura, it’s a partnership – working hand in hand with business owners, directors and their advisers (our introducers).