We were being asked to support a loan request of £150,000 over 60 months to support the company in moving to a new trading location and to enable the purchase of new equipment and train a number of new warehouse operation staff. This will enable the business to operate out of just one site and thereby reduce overheads enabling a more efficient and cost effective operation.
The business has operated for over 25 years and has successfully adapted to the many changes within the sector over the course of the life of the company to date.
The company achieved revenues of approximately £11m during its most recent financial year or which warehousing revenues accounted for around half of this total.
Analysis of the information provided in support of the application showed a loan servicing capability of around 1.5x with all other finance providers, including a sizeable invoice finance facility well respected. The company bank statements showed a well conducted bank account which operated in credit throughout the period shown.
The company director had good personal credit and had limited equity in his personal residence.
We were pleased to sanction the loan request over a term of 36 months subject to a directors Guarantee and the support of the Enterprise Finance Guarantee.