Reparo Finance Completed Deal: £30k for a Business with Multiple Adverse Events on its Credit File

Deal Type: Machinery Investment

Loan Amount: £30k

Loan Type: Reparo

Security: Director and family member’s personal guarantees, debenture over the company.

Region: South East

Reparo was approached by a broker to assess a client that was finding it hard to obtain the funding it needed.

The company was an established agricultural services business with one director that had been operating as a company since 2009. The loan was required to fund deposits on machinery the business was purchasing to expand its product offering.

There were several reasons that other lenders had rejected the loan:

• The director wasn’t a UK homeowner.
• There was a CCJ on the company record.
• Because the machinery being purchased was second-hand, the traditional asset financing model wasn’t a viable option.
• There was a HMRC Winding Up Petition for an unpaid VAT bill.

Reparo always take a closer look at every proposition as experience has shown that every business is unique, and there is often a way to find a solution.

In this case the team went to visit the entrepreneur, and a few circumstances meant they were comfortable providing the loan.

• The entrepreneur was very transparent, clearly articulating his business model and reasoning behind the loan.
• The Winding Up Petition had come about due to a short-term slump in the business, and payment had been made to HMRC to clear the debt.
• The business had been trading for over a decade.
• A close family member was also willing to provide personal guarantee.
• A debenture was registered

Overall, Reparo had confidence in the entrepreneur and was happy to go ahead and provide lending.

Reparo relationship manager Jason Cossey said: “Initially this proposition didn’t look promising, there were strong reasons why lending was rejected. We always take a closer look, and after meeting the entrepreneur, understanding the business and hearing first hand why some of the adverse events appeared on the company credit file, we were comfortable providing the loan.”

Reparo managing director Andrew Ward commented: “The structure and background was important here – the lender was an established family business with an open and transparent business plan to move on from short term difficulties. Typically, we will look for solutions like this when most lenders will automatically reject the deal based on rigid criteria.” To discuss a loan of between £10,000 and £1m, please get in touch with one of the team on either sales@reparofinance.co.uk or 0161 451 5710. You can find out more about us on our website:  www.reparofinance.co.uk.