The problem
The operator had found a second site and needed a deposit and fit-out costs. Unsecured business lending was available but priced for the risk, and the monthly cost would have eaten most of the first year's projected margin at the new site.
What we did
The existing freehold had appreciated and carried modest borrowing. Refinancing it released the capital required at a materially lower rate over a much longer term.
The trading figures for the existing site did the work in underwriting, which is the case a commercial lender is best placed to read.
How it ended
The raise funded the deposit and the fit-out with a contingency, and the new site opened without recourse to short-term borrowing.
The combined monthly cost was lower than the unsecured alternative on the raise alone.
Anonymised and illustrative. This describes the kind of case we arrange rather than the affairs of any identifiable client, and the figures are indicative. It is not advice and not a guarantee of what a lender would offer you.
