Reparo look at every loan application on its own merits; unlike traditional lenders, Reparo doesn’t have rigid lending criteria. Instead, all circumstances are taken into consideration. This means loans with out-of-the-ordinary circumstances can get funding.
When completing loans Reparo puts a large emphasis on speed; the process to review, approve and complete loans is greatly accelerated by the team working together closely.
In this case, we’re going to take a look at a manufacturing business that was in danger of losing its home and how Reparo’s efficient lending process averted the crisis.
Reparo was contacted by a long-standing manufacturing business that needed funding urgently. The business was in the process of exercising an option to buy their factory: the lease and corresponding option-to-buy expired in 14 days.
If the lease expired, the business would be exposed to eviction or a large price hike.
The bank had spent six months reviewing the loan and pulled out at the last minute, leaving the business with a funding requirement of several hundred thousand pounds.
The problem that led to the bank pulling out was regarding the flood defences. The area where the land was based had been flooded three years previously, and although half a million pounds had been spent on flood defences, they hadn’t been officially signed off.
While the defences hadn’t been given official approval they had proved their worth in a recent flood: they were effective, but the sign-off would come after the lease expired.
This left the business with a huge problem.
There was a fixed timeline of two weeks to put financing in place for the business, so Reparo’s MD Andrew Ward visited the business within 48 hours.
According to Jason Cossey, one of Reparo’s Relationship Managers’; the first meeting was challenging: “The owners of the business were very worried, they had counted on the loan from the bank and to be left in the lurch at the eleventh hour was devastating. They also worried that no one would be able to help them in the necessary timeframe – we had to get into the details immediately”.
Reparo had to make a quick decision on whether they could help the business – they didn’t want to start a due diligence process that led to no funding because the business would have no time to find alternatives.
The Reparo team has seen hundreds of loan applications and can make quick decisions on the viability of a loan. In this case, Jason and the wider team were able to make an assessment that they could help because:
Reparo was able to comfortably arrive at a yes because of this range of factors; it was testament to the speed and diligence of Jason’s vetting that all of this information could be reviewed in an incredibly short timeframe.
Jason explains how he got this completed: “It was a very hectic time, we needed to do some reasonably detailed due diligence in an incredibly short timeframe while communicating and reassuring the business at every step”.
There are a few reasons why Reparo was able to deliver vetting so quickly:
The loan was completed in time for the business to purchase the factory, the flood defences were signed off, and the loan was repaid.
Jason enjoyed working on this deal: “It was satisfying to help the business. It was clear that they were credible and had security, but they didn’t quite fit into the exact profile that a bank needs. I see our role in helping businesses to access capital and continue to flourish as crucial to the economy. If everything was left to traditional lenders so many credible businesses would go without funding because they don’t fit exactly into a box”.
To discuss a loan between £10,000 and £1m, please get in touch with one of the team on email@example.com or 0161 451 5714. You can find out more about us on our website: www.reparofinance.co.uk