Two Staff Down & Low Turnover – Helping a Heating & Plumbing Company Secure £100,000 to Grow

Company Sector: Heating & Plumbing

Loan Type: Term Loan
Loan Amount: £100,000

The Challenge

This client ran a heating and plumbing business and had hit a moment that a lot of small trade businesses will recognise: two members of staff left in quick succession, and overnight the workload fell back on him. He was doing the work himself, keeping the jobs ticking over, but that left no time to actually run the business.

He knew what he needed: more staff to take the pressure off, and a vehicle to expand capacity and take on more work. The problem was that his turnover, at the point he came to us, was on the lower side. The numbers didn’t yet reflect where the business could go, only where it had been while he was stretched thin trying to hold everything together.

Our client had a clear idea of what he wanted from any finance arrangement: a long-term option with the flexibility to overpay or settle early if the business grew faster than expected. 

Our Solution

We looked at the business for what it was: a viable operation going through a difficult patch caused by staffing, not by anything fundamentally wrong with the underlying business. The case we put together reflected that, what the business looked like with the right people in place, not just what the turnover said on the day he applied.

A term loan of £100,000 over 72 months was arranged, structured to give him exactly what he’d asked for:

• A longer term to keep monthly repayments manageable while the business rebuilt momentum
• Full flexibility to overpay when cashflow allowed
• The ability to settle the agreement early without penalties if he chose to

From first enquiry to money in the account: 15 days.

The Results

Bringing in more staff took the day-to-day work off his plate and gave him the ability to focus on running the business properly.

More contracts came in and as the business grew and cashflow improved, he was then in a position to use the remaining funds for the vehicle he needed.

What worked for this client:

• £100,000 approved despite turnover being a limiting factor at the time of application
• Funded in 15 days from first enquiry
• 72-month term kept repayments manageable from day one
• Flexibility to overpay and settle early without penalties or restrictions
• Staff hired quickly, freeing the owner to win new work and grow the business
• Vehicle purchased once contracts were won and cashflow had strengthened
  

If your business is facing similar challenges - get in touch to explore how we can help - 01832 770 273