Reparo Finance – We’re Here to Help in an Emergency

Clients often come to Reparo because they have an immediate cash need. Reparo can move quickly to provide financing, which means they’re the perfect choice when time is short.

A key reason why Reparo can review, approve and complete loans quickly is because every person in Reparo’s team has a technical background in commercial lending. This expertise is critical for getting funding in place quickly and for structuring deals that benefit clients.

In this article, we’re going to look at quite a unique loan Reparo provided and how they made sure terms were right for the client.

The Situation

Liam Killen, Reparo’s experienced New Business Manager, was contacted by a farmer who had a serious problem with cash flow.

One of the farmer’s cattle had tested positive for TB. This meant that he couldn’t sell any cattle until two further TB tests had been negative, a process which takes 120 days.

The farmer needed to run his farm in the meantime and came to Reparo requesting a £50,000 loan to use as working capital during the 120 day period when his cattle were being re-tested.

The Solution

Liam travelled to meet the farmer and learn more about his circumstances.

Reparo place a lot of importance on visiting clients they work with because it helps them understand the business and why they need the loan. In this case, the farmer had an established operation, and the farm had been running successfully since 1890: it was immediately clear to Liam that the need was legitimate.

Liam explains the importance of visiting the business, “In this case, it was really useful to visit the farm. I could see the scale of the operation and the assets with my own eyes and I saw the land which our loan would be secured against. It a great way to build a relationship with the business”.

The farmer needed to get the cash quickly because it was essential for running the business. With this in mind, Liam explains how he drove the deal to completion, “After visiting the farm we knew the clock was ticking: without working capital the farmer was going to run into very serious problems. We worked closely with the surveyor and solicitors to get the land valued and draw up loan documents. It was pretty full on getting the paperwork together, but we managed to get it done in a couple of days”.

Reparo were able to get the deal across the line for a few key reasons:

1. Liam has completed many similar deals so could quickly evaluate the prospective deal and get the process started immediately: one of Reparo’s key assets is that the whole team has end-to-end deal experience and over ten years in the industry.
2. Reparo are always willing to look outside the box for solutions.
3. The whole process was client centred, so the client was completely clear on what was happening. For that level of loan Reparo can use personal guarantees, but by using the land as security, the deal was more cost-effective for the farmer.
4. Reparo use professional services firms that are deal-focused. They understand that deals need to happen fast and work quickly on documents and questions: deals are never held up on Reparo’s side.
5. The credit committee sits regularly and always engages with the lending team. In this case, Liam had already briefed the committee about the deal and timeframe, so when the credit paper was ready, they could make a decision immediately.

The Outcome

The loan was put in place quickly, and the farmer was able to use the cash to keep his business running smoothly.

Liam was pleased with the deal: “It was great to help a business that had experienced some really bad luck. As with many farmers, he was asset rich and sometimes cash poor; with this financial structure short-term injections of working capital are good solutions. Because the farmer didn’t regularly borrow money it was satisfying to help him to understand that funding options were available for his business”.

If you need cash for short or long term business needs, Reparo offers loans between £10,000 and £1m+. Please get in touch with one of the team on sales@reparofinance.co.uk or 0161 451 5714.

You can find out more about us on our website:   www.reparofinance.co.uk