Deal Type: Working Capital
Loan Amount: £80K
Loan Type: Fast Track
Security: Personal guarantees
Region: Midlands
A long-standing Reparo client approached the company about a working capital loan. Having repaid 50% of an original Reparo loan the company had a requirement for an increased lending facility
Reparo worked closely with the long established media business to provide a loan in 2018 so when the company enquired about a loan extension it was an extremely quick process.
A Fast Track loan from Reparo was preferable to raising funds from a traditional lender for a few reasons:
- It is likely that traditional lenders would have subjected the business to a prolonged underwriting process.
- Traditional lenders may have been unsatisfied with personal guarantees; the requirements to provide additional security would have significantly prolonged the lending process.
- The company already had a commercial mortgage, an overdraft and a line of credit from a bank. On that basis, It was possible traditional lenders would be unwilling to extend credit further.
Reparo is always willing to look at any lending proposition and doesn’t apply strict lending criteria – rather, it takes every application on its own merits. In this case, there were several factors that enabled approval in 48 hours:
- Reparo had already made a loan to the business, so based on previous payment history, it was comfortable the business was creditworthy.
- During the initial application, Reparo visited the business to meet the directors and understand the business model. This context is crucial to evaluating the viability of lending.
Reparo was able to provide funding within 48 hours of the application, allowing the directors to get on with running the business. The certainty this approach provided for the company is huge – once they knew funding was in place, clear plans could be made. A months-long bank process would have eaten up considerable time and resources, so Reparo was the perfect solution.
Reparo relationship manager Jason Cossey said: “We understood the business really well so when they came back to us for a loan it was a simple case of checking its recent financial performance, and we were able to get it signed off quickly.”
Reparo managing director Andrew Ward commented: “In these cases our flexibility is a huge asset. Whereas traditional lenders will have required quite a lot of information, we were comfortable signing it off quickly. Because we had met the business and taken the time to understand its value proposition we could quickly understand why the cash was needed and the plan to pay it back was sensible.”
Reparo director Sharon Bryden added: “We were comfortable using personal guarantees, not only was the business long established but the founders had good credit scores and a background of business success. Because we can be flexible with lending decisions this was agreed quickly.” 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.