Synety Group secures loan facility with Barclays

AIM-listed Synety Group, which provides cloud-based telephony software and services, has secured a £900,000 loan facility with Barclays Bank.

The fixed two-year term loan will provide the group with access to additional capital for its growth plans as well as general working capital.

Under the terms of the loan, £500,000 will be drawn down on 1 March, with the balance to be drawn at any time within the next six months.

Interest on the loan, which is part of Barclays Innovation Finance and is backed by a guarantee of the European Investment Fund, is set on a ‘base rate plus’ basis, at 8.7% above base rate and is payable quarterly, the company said.

Chief executive Simon Cleaver said: “We're delighted to announce this credit facility with Barclays. As per our recent trading update, the company had net cash of £1.58m at our year end and this facility now gives the company further capacity for its growth strategy going forward.

At 1054 GMT, Synety shares were up 5% to 69.85p.