Flexible Credit and Asset Finance Helps Removals Business Fund New Storage Containers
Company Sector: Removals & Storage
Loans Secured:
- Revolving Credit Facility - £19,000 - 60 Months
- Asset Finance - £22,000 - 36 Months
The Challenge
"It needed a flexible funding solution to help manage cashflow while also investing in additional storage containers"
A growing, family-run removals and storage business approached BEAR looking for funding to support its operations and manage the costs associated with expanding its storage offering.
Having embarked on a relatively new business venture, the company was still building its turnover and establishing itself in the market. It needed a flexible funding solution to help manage cashflow while also investing in additional storage containers.
The purchase of new containers involved significant upfront VAT payment, creating additional pressure on working capital. The business wanted to avoid tying up too much cash in the purchase while ensuring it could continue to meet its day-to-day commitments.
Our Solution
"funding facilities to address both its immediate cashflow needs and longer-term investment plans"
After understanding the business's requirements, we arranged a combination of funding facilities to address both its immediate cashflow needs and longer-term investment plans.
We secured a £19,000 Revolving Credit Facility over 60 months, providing the business with greater flexibility to manage cashflow and meet the upfront VAT payment required for the new containers.
The containers were funded through Asset Finance of £22,000 over 36 months, spreading the cost so the repayments sit alongside the income the new containers will achieve.
The Results
- £19,000 Revolving Credit Facility: Providing flexible funding to support cashflow and cover the upfront VAT payment on new containers.
- Asset Finance: Spreading the cost of new storage containers over 36 months.
- Improved cashflow management: Avoiding the need to commit significant working capital to the container purchase.
- Investment in business capacity: Supporting the expansion of the company's storage offering.
- Funding secured within 6 days: Allowing the business to move forward with its plans promptly.
If your business is looking to invest in new equipment without straining cashflow, get in touch to explore how we can help - 01832 770 273