Engineering Firm Acquires New Business with £150,000 Term Loan — Funded in 6 Days
Company Sector:
Building Management Systems (BMS) Engineering
Loan Amount:
£150,000
Loan Term: 60 Months
Loan Type: Term Loan
The Challenge
This client runs a well-established engineering business offering a full service across Building Management Systems, from initial survey and design through to manufacture, installation, commissioning, software, graphics and ongoing maintenance. They work across a wide range of sectors including schools, hospitals, offices and retail. A solid, experienced business with a clear track record.
The opportunity in front of them was straightforward: buy another business for £150,000 and expand. The challenge was their borrowing history. They’d taken on previous finance, much of it from sub-prime lenders at expensive rates, and their cashflow position had varied over time. We understood that we needed to engage with the right lender to ensure a full understanding and focus on the present strength of the business instead of the past.
The owners had a clear preference for how they wanted to structure the finance; they didn’t want significant personal exposure and the acquisition needed to be funded through the business.
Our Solution
We looked at the whole of the business including their revenue and their sector experience and built a case accordingly. The previous borrowing and cashflow variation needed to be explained in context and we made sure the right lender saw the full picture rather than just the surface-level numbers.
A term loan of £150,000 over 60 months was arranged, chosen specifically because:
- A longer term kept monthly repayments at a level that worked for the business without straining cashflow
- The interest rate was lower than shorter-term alternatives, offering better value over the life of the loan
- It kept the funding entirely within the business, with minimal personal exposure for the directors
From the first conversation to money in the account: six days.
The Results
The acquisition went through. They bought the business they’d identified, on their terms, without having to put themselves on the line personally to make it happen. The funding structure gave them room to breathe with monthly repayments that didn’t put pressure on the business while they integrated the acquisition and pushed forward.
What worked for this client:
- £150,000 secured to fund a full business acquisition
- Funded in 6 days from initial contact
- Longer term and lower rate than alternatives, better value and manageable repayments
- Minimal personal exposure
- Previous expensive borrowing and cashflow variation successfully navigated with the right lender
If your business is facing similar challenges - get in touch to explore how we can help - 01832 770 273
