Business Loan Facility To Fund Working Capital For Company Expansion

We are often approached by business owners who are looking to grow and require finance to fund the purchase of equipment, stock or a move to larger premises.

Another common reason is using finance to boost working capital to increase production in response to greater demand for a product.

The Scenario:

The client based in outer London was involved in the manufacture of pharmaceutical products and as a consequence of increasing popularity for one of its product lines needed additional finance to cope with increased demand from one of its large high street distributors. In this scenario the company needed to scale up from 4 to 10 units and to do so require funding of £300k to ensure that the order could be satisfied.

The Solution:

Using the Company accounts and recent management accounts to demonstrate the financial soundness of the business model we were able to source a £300k flexible rolling finance facility. The loan facility allows the client to borrow as and when monies are required.

The new facility meant the client could an fund the first phase of the order at a very reasonable interest rate.

The flexible nature of the facility means the borrower will only pay interest when he draws on the money not when it is not being utilised.

Another attraction of the our solution was the option to borrow more when the contract requires him to deliver a larger number of units with minimal complication.