We were recently in receipt of an application from one of our introducers which was on behalf of a crane and specialist lifting equipment manufacturer and service firm with an established track record of over 10 years. They provide a range of lifting solutions through from design to the manufacture of products such as factory cranes and chain hoists.
We were being asked to support a loan request of £50,000 over 36 months to enable the business to increase headcount and obtain some new equipment.
The most recent set of accounts provided in support of the application showed that revenues had grown to over £1.5m with profits of around £200k being shown.
EBITDA had increased by around 40% and ample serviceability was shown with a debt to service ratio of 1.14 evidenced. The company bank statements which were provided showed well conducted accounts with very light usage of an existing overdraft facility.
The director had considerable equity in his personal residence and we were therefore happy to approve this loan with the support of a director’s guarantee.