There are many reasons why a business may struggle to secure lending. It may have unusual security, lack management accounts, or have recently experienced adverse events.
In this article, we’ll look at why Reparo is well-placed to help if challenging circumstances prevent a business accessing capital.
Reparo Is Set Up to Get Challenging Deals Through
Where some lenders might be put off by an unusual deal, at Reparo we consider every application we receive and we pride ourselves on providing capital when traditional lenders are unwilling to help.
There are several reasons why we are well placed to work on this type of deal. Here are some of them:
- We don’t have a set of rigid lending criteria. As long as the directors have a solid business model and a realistic plan for how to repay the loan, we are happy to take a look.
- We provide a personal solution. We often travel to meet directors to hear first-hand about their business and the reason they need a loan. This allows them to explain any issues to us directly and helps us to understand the business and its specific challenges.
- Our team is experienced and has the expertise required to overcome a variety of challenges.
Here are some examples of challenging deals we have successfully completed over the last year:
£200k Helps Private School Survive the Summer
In this deal, a private school came to us to borrow money to fund a restructuring project. The deal was complicated due to a large number of different stakeholders, and we had to perform KYC checks on each one.
A third party was involved in the restructuring, and there was a fixed charge over the school’s asset. The school also needed the capital quickly, which added pressure to the situation.
We had to work closely with stakeholders by answering questions and explaining parts of the agreement where necessary.
Ultimately, we were able to come to a deal that resulted in the school receiving the funding it needed in time.
£100k Helps Centuries-Old Business Brave Cash Flow Issues
In this deal, a business came to us for help with cash flow issues brought on in part by a CCJ.
Factors that complicated the deal included an existing £50k loan that was secured against a property, and the fact that the assets the company wanted to use to secure the loan were a funeral home and a mortuary—unusual circumstances to say the least.
Despite these challenges, we were able to get the deal done. We received a valuation for the asset based on the property being a viable purchase for a developer. We also decided the CCJ was minor and not indicative of a high risk of company failure, and we were comfortable to proceed.
£30k Helps Agricultural Business Expand Its Operations
This agricultural services company needed a loan to buy the equipment necessary to expand its service offering. The deal was complicated because the director wasn’t a UK homeowner and there was both a CCJ and an HMRC winding up petition on the business. Also, as the company wanted to buy the equipment second-hand, invoice financing wasn’t an option.
Despite these seemingly large hurdles, we took a closer look at the business and the owner was able to convince us of its viability. He explained that they had paid the debt from the winding up petition and provided information about the plan for the business going forward. Beyond this, a close family member was able to give a personal guarantee and a debenture was registered.
This ultimately led us to provide the client with the loan, even though several other lenders had refused.
£100k Helps IT Consultancy Implement Growth Plans
This deal was initially complicated because of unpredictable consultancy income. Additionally, the directors wanted to use IT equipment as security, which can be challenging due to its potential for depreciation and difficulty providing a valuation.
As usual, we were happy to take on the challenge. We enlisted an independent specialist to quickly and accurately value the equipment being used for security. We also spoke to the team and were happy that they had a clear plan about how they would use and repay the loan.
Reparo Can Help Your Business Get Access to the Funding It Needs
As the above examples show, at Reparo we don’t let a complicated deal put us off lending to a business. We’re happy to lend to companies for a variety of reasons, and we can do so at speed. If your business is in a challenging situation that traditional lenders won’t look at, get in touch with one of our team to see how we can help. Call us on 0161 451 5710 or email firstname.lastname@example.org.