Kortext looked at packages from several banks, as well as from venture debt providers, before switching to HSBC UK and securing a multi–million pound facility from HSBC Growth Lending.
HSBC UK launched the £250m Growth Lending Fund in 2022, with the aim of providing support to high growth scale-ups earlier in their growth journey. The fund provides access to finance, as well as HSBC’s international expertise, and will help businesses achieve their global ambitions.
“HSBC were able to put forward a compelling offer that was tailored to our business needs. They also understood our technology and platform, our working capital cycle, how tech businesses function and the education market in which we operate,” says Financial Controller Alex Lewis, who is one of the earliest members of the Kortext team, joining back in early 2014.
The new debt facility, he says, gives Kortext balance sheet strength and solidity so that it has the liquidity and the capitalisation to execute on its growth plans as it moves to profitability.
It is also an important marker for the company. “As we demonstrate our ability to scale and prove our business model, we are attracting high-quality talented people to the business. It’s important for them to know that they are joining a fast-growing sustainable company with a strong balance sheet.”
The benefits to Kortext go beyond the provision of additional funding.
“We now have HSBC UK as a partner who can bring us banking products, technologies and corporate banking support to help us mature as a business,” he says. “We now have corporate facilities that match our ambitions to become a global business,.”
The partnership with HSBC is also vital for Kortext as it extends its international reach.
The company is expanding into countries across Africa, the Middle East, and Southeast Asia. “In these markets HSBC’s trade team can help us navigate letters of credit and other trade finance capabilities.”
In other words, HSBC is providing Kortext with a bedrock for its banking and finance systems: “That means we can focus on growing the business efficiently and effectively. If we have a problem, then there is always someone at the bank who has seen it before and knows how to deal with it,”adds Lewis.