Business finance case studies...

Chiropractor in good shape for growth...

A professional Chiropractor Practice wanted to purchase their own business premises which had a purchase price of £390,000. The client only had a small deposit of £60,000 meaning a high loan to value circa 85% required. The proposition was further complicated by the property requiring change of use approval.

Funding was agreed at £335,000 over 20 years at 2% above base rate with a further £15,000 working capital facility available to assist cash flow in the short term.

Purchase of equestrian centre goes ahead on time...

A client was purchasing an equestrian centre for £450,000 and required £300,000 of funding. Existing bankers had agreed £250,000 at 1.9% above base rate over a 15 year term. Completion in 21 days was required.

Funding was agreed at £315,000 at 1.7% above base rate over 25 year term. The deal was completed before the deadline taking 15 working days from initial enquiry to drawdown.

Invoice finance enables electrical distributor to grow...

A Manchester-based electrical business was set-up in September 2001 and the founders met various bank managers prior to trading to see how they could help fund the business.

No one demonstrated the flexible approach and understanding provided by our funding partners and within a few days they had an offer on the table which was accepted.

The business started trading on 1st September 2001 and some stock was purchased towards the end of August, with the bulk bought in September and paid for in October. Stock was funded by an invoice finance facility paying 80% on invoices enabling the business to maintain the cashflow needed.

Restaurant & pub refinance secured after bank's refusal...

We were approached by a very profitable freehold restaurant providing cash injections of £120,000 to a leasehold pub for refurbishment over a 2 year period.

The client owed his existing bankers £200,000 on loan and £20,000 on overdraft, a limit which he was struggling to manage with. The client's own bank refused his request to restructure as the financial accounts for the restaurant did not appear to support the repayment schedule.

Our lender agreed a £275,000 loan over 25yrs at a margin of 3.5% above Libor against a valuation of £420,000 for the restaurant.

Professional landlord secures £800,000...

A very experienced and well established landlord with 53 properties in a mixed commercial & residential portfolio was looking to release funds and maximise his gearing to fund new purchases initially for 100% of purchase price. He was multi-banked with borrowing of £1.7m against portfolio value of £4.5m. Lending was agreed at a margin of 1.5% on an £800,000 purchase price at 85% LTV including a forward buying facility of £1,000,000 for future purchases. Clients now have over £3,000,000 of facilities with the lender.

New printing market tapped with assistance of asset finance facility...

Printmaster is a small printing company based in Yorkshire. The sales director identified a new and lucrative market for the business which required specialised folding and binding equipment. To support this equipment the existing IT based systems also needed updating.

Although the business had only been trading for ten months, a provider was sourced who was willing to fund the new equipment at a competitive rate. The provider took into consideration their healthy, although short, trading history and earnings forecasts.

Since diversifying into the new market the business has secured three substantial contracts and received repeat business from new customers.

Wine merchant enjoys new lease of life after invoice discounting...

A small supplier of quality fine wines required cashflow funding after making a considerable loss in the previous trading year due to late payment of orders.

Although the company had a full order book and efficient accounting systems, the owner was ready to retire and sell out at a loss. An invoice discounting facility was arranged with a major UK lender just 8 working days after the initial contact. Pressure on cash flow was reduced which enabled the business to invest in new markets and increase turnover by 22% over the following 12 months trading.

Discounted property purchase secured with bridging finance...

£900,000 advance with 6 month repayment holiday...

A client had recently restructured their business after losing two key government contracts. This forced redundancies and one off costs which translated into trading losses. Two properties were provided as security at a value of £1.9m. We were able to advance £900,000 at a margin of 3% over LIBOR for 20 years. In addition, we deducted the first 6 months payments in order for the applicant to enjoy a repayment holiday while it delivered restructuring of its business. Projections and future order book supported the future viability of a restructured business.

£10 Million development goes ahead thanks to cash injection...

A Liverpool entrepreneur has started laying the foundations to a new, £10million residential development, thanks to a cash injection from our short term commercial property lenders. Work has already started on site for local property developer, Jimmy Hearity, after gaining planning consent to build 58 plush residential apartments on Moss Street. The two bedroom apartments, which will boast hardwood floors and contemporary fixtures and fittings throughout, are located in Moss Street (near the Royal Hospital), an up and coming area of the city. The short term loan was secured against planning consent on the plot of land at Moss Street. From start to finish the deal took a little under ten days to complete.