Consolidation Loan and Revolving Credit Facility: £728,000 of Funding for a Higher-Risk Sector
Company Sector:
Recycling & Waste
Loans Secured:
- Consolidation Loan - £250,000 – 72 Months
- Revolving Credit Facility - £478,388 – 12 Months
The Challenge
“Historic, high-rate borrowing was preventing the business from growing"
A vehicle recycling and used parts business had fluctuating turnover and operated in a sector many lenders view as higher risk. Historic, high-rate borrowing was preventing the business from growing. The client wanted to consolidate an existing finance agreement, secure a more competitive interest rate and increase its available funding. Additional working capital was particularly important to support the purchase of new stock and bridge a temporary funding gap while awaiting the proceeds from a land sale.
Our Solution
We arranged two facilities. A £250,000 Consolidation Loan over 72 months replaced the existing agreement at a lower rate. We also secured a Revolving Credit Facility to provide £478,388 of flexible working capital.
The Results
"The business now has the working capital to buy stock when opportunities arise, on better terms than before."
• Reduced interest rates - existing borrowing restructured over 72 months at a lower rate.
• Greater financial flexibility - achieved through an increased Revolving Credit Facility.
• Additional funding - available to purchase stock and bridge the gap between the land sale.
The business now has the working capital to buy stock when opportunities arise, on better terms than before.
If your current finance agreements are preventing your growth, get in touch with our team on 01832 770 273