The business was established and proven. The circumstances were exceptional with the client being
understandably unprepared. There was an offer of finance made by the client’s bank which they were close to accepting.
The bank finance offered was good but fell well short of what was required. The client was left with the impression that the bank offer was the ‘best’ offer. In terms of cost of finance it was, in terms of need it definitely fell well short. We had to find a better option that met the true needs of the business.
WHAT WE DID
We took a step back and looked at the numbers for 2020 and 2021, recognising that the cash flow challenge was going to be more long term. We then worked with the client’s accountant to establish a figure that was needed from the finance to make things work. This was not about just the cost of finance, it was about ensuring the finance on offer was suitable and did the job.
By working with a lender who could lend what the client needed we secured £183k of CBILS finance, being £120k more than their bank proposed. This was completed in May 2020.