Overcoming Credit Record Challenges: Securing Funding for Storage Business Expansion
Company Sector: Storage
Loan Types: Asset Refinance
Loan Amount: £50,000
Loan Purpose: Raise additional funds for business expansion
The Challenge
Our client, an ambitious, fast-growing self-storage business in the Midlands, were eager to expand operations but faced significant barriers to securing funding. A commercial default on their credit record had already led to declines from high street banks. Compounding the challenge, the client struggled to provide key documentation, such as old invoices and proof of payment, which are typically required to progress a lending application.
For a business planning to expand operations, these obstacles could have delayed or even halted their project. To overcome them, we needed a solution that recognised the current strength of the business rather than past credit issues, while demonstrating the value of their existing assets to potential lenders.
Demand for self-storage is increasing rapidly across the UK, with the industry surpassing £1.2 billion in annual turnover in 2024 (Self Storage Association UK)
Our Solution
After reviewing the client’s circumstances, we identified an asset refinance facility as the most suitable funding solution. This approach unlocked capital tied up in existing assets, providing the funds required for the new project without affecting day-to-day working capital.
The refinance route was selected for several reasons:
- Security for the lender: Reduced interest rate
- Speed: Quick access to funds was essential to avoid project delays.
- Flexibility: Repayment terms were structured to align with the client’s cash flow.
- Security for the lender: The assets themselves reduced the perceived risk, enabling approval despite the default.
We worked closely with the client to submit documentation, positioning the application in the best possible light. Through a tailored and persistent approach, the refinance was approved, delivering the funding needed to move forward confidently.
The Results
The asset refinance delivered both immediate and long-term benefits:
- Short-term: The client gained access to funds quickly, launching their new project without impacting daily operations.
- Long-term: The business was able to invest in growth, expand operations, and increase revenue, with the refinance structured to support sustainable cash flow.
By unlocking the value of their assets, the client could pursue their expansion plans with confidence, while maintaining financial stability and protecting existing working capital.
If you're facing similar challenges and want to explore the options available, get in touch 01832 770 273
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