Deal of the Month
Each month, we take a look back at a recent successful loan application.
We would love to have the opportunity to assist other quality businesses such as this who may be looking for affordable business finance, so please do get in touch if you have clients in similar circumstances.
We were recently in receipt of an application from one of our introducers which was on behalf of a 5 year old business who were looking for some assistance with their plans to develop further. The business engages in the supply and installation of insulated render and polished plaster, servicing clients generally across London and the South East. The business covers both residential and commercial premises.
We were initially approached with a loan request for £100,000 over 60 months which was to be utilised in the purchase of some specialist equipment, ongoing marketing activities and some working capital support.
In the most recent financial year, a reduction in overall revenues of around a quarter was noted although profitability was maintained with around £68k EBITDA evidenced, pre dividends.
The bank statements provided in support of the application showed that an agreed overdraft facility was extensively used although the facility limit was respected.
In view of the reduction in revenues and the level of overdraft usage, we felt that a loan of £50,000 over 36 months was more appropriate at this stage and the client was happy to proceed on this basis following discussion.
The directors of the company were homeowners with considerable equity evidenced and therefore we were pleased to agree the request subject to Personal Guarantees being provided.