One of the many recent Newable Business Finance loan applications we received from one of our introducer partners was from a van hire business based in the midlands which has been established for a number of years.
The company’s clients include the likes of delivery businesses such as FedEx, City Sprint and Parcelforce. They were seeking a loan of £150,000 over 5 years in order to significantly add to and upgrade their fleet of vehicles.
The most recent accounts for the business showed revenues had increased by almost 50% to a figure of around £4.6m and the operating profit was in excess of £600k.
The business had increased borrowing in the past year and was using it’s overdraft facility quite extensively although all facilities were fully respected.
The EBITDA calculation showed that the required loan was easily serviceable and the company directors were homeowners with equity. We were therefore happy to approve this loan secured by Directors Guarantees and a Debenture from the company.