Our client, a West Yorkshire based manufacturer of building plastics, saw quick growth over their first 3 years and utilised a number of asset finance and cash flow loans in order to expand their operations.
They now have a number of loans repayable over different terms and secured against different assets and personal guarantee’s – some of these terms are putting pressure on cash flow and also have personal guarantees that were given at a point when the business was in its infancy and had a smaller balance sheet. Some of the asset finance loans were set on terms that did not reflect the useful working lives of the assets upon which they are secured.
We worked with the client to evaluate their current position, what their commitments were, what they could service and what security may be available to support lending at the current time given the assets they had now built up.
In partnership with one of our asset specialist lenders, we created a facility that removed the personal guarantee liabilities to the directors by valuing the assets and refinancing them over a term that matched their remaining useful life. This allowed all the debt to be consolidated, the loans repaid and the monthly commitment lowered by nearly £4,000 per month. This freed up funds for the business to look at the next phase of their growth and since that time they have doubled turnover again and are now looking at further growth in the future.
Easy to deal with from start to finish
