From £200k to £600k and a Huge 25.2% APR Reduction for Plumbing Client
Company Sector: Plumbing & Heating
Loan Type:
Revolving Credit Facility (increased)
New Amount:
£600,000 (2.55% per month)
Previous Amount:
£200,000 (4.65% per month)
APR Saving Per Year:
25.2% saved
The Background
BEAR first supported this Plumbing & Heating client when they secured new contracts and needed £200,000 to expand their workforce and invest in tools, equipment and vehicles. The Revolving Credit Facility we secured delivered exactly what was needed: flexible repayment terms with the ability to overpay and repay early.
By investing in its fleet, equipment and people, the business strengthened its position, they took on larger jobs and fulfilled contract demands reliably. Their balance sheet was made stronger as they owned assets outright, adding long-term value and improving their future borrowing potential.
With the foundations firmly in place, the owners identified their next opportunity: acquiring an established plumbing training business.
The Challenge
"our client needed to increase their credit facility from £200,000 to £600,000 (a £400,000 uplift) at a lower rate"
Acquiring an established training business was a significant step, our client needed to increase their credit facility from £200,000 to £600,000 (a £400,000 uplift) at a lower rate. They wanted to fund the acquisition without disrupting day-to-day operations or depleting the working capital reserves they had worked hard to build within their existing business.
The key requirements:
- Revolving Credit Facility increase to £600,000 to complete the acquisition at a lower interest rate
- Continued flexible repayment terms, including the ability to overpay and repay early
Having already experienced the bright and efficient service demonstrated by BEAR, our client returned to us.
Our Solution
£400k increase & 25.2% APR reduction!
We secured an increase in their Revolving Credit Facility from £200,000 to £600,000, not just upsizing the facility, we also achieved a huge improvement on the interest terms. The interest rate was reduced from 4.65% to 2.55% per month, cutting the cost of borrowing by 25.2% in APR terms. The client retained the flexible repayment structure they valued, including the ability to overpay and repay early without penalty.
The increased facility meant our client could acquire the plumbing training business outright, while the revolving nature of the facility means funds can be drawn down and repaid in line with the cash flow cycle of the business.
"not just upsizing the facility, we also achieved a huge improvement on the interest terms"
The Results
The acquisition has transformed the client’s position in the market. By owning a plumbing training operation, the client now benefits from:
• A new revenue stream from training courses and certifications
• A pipeline of qualified tradespeople, directly addressing the skills shortage that constrains growth across the sector
• Enhanced reputation and credibility as a sector leader
All achieved with a significantly lower cost of finance than before.
Is your business ready for its next move? Get in touch to explore how we can help - 01832 770 273