Case Study - Commercial Finance

Our Client’s Challenge

Our client had reached a point in her life where she wanted to take on a new challenge. She wanted to purchase and run a local post office in Leicestershire. This would be a new journey for our client and the first time she’d be running her own business but she was confident and excited at the prospect due to the transferable skills she had built up over the years during her management in the retail and hospitality sectors.

As well as being a start-up, this was challenging because the subject purchase was against a lease (no freehold) providing no tangible security, and with no security the proposition was made even more challenging as the client was limited to a 30% deposit.

Our Advice

Our Adviser gathered all the relevant data, including the target post offices trading financials and explored all options. After piecing it all together, our Adviser prepared a detailed case demonstrating why the deal, client and opportunity made sense.

This analysis included a delicate approach as the client had no evidence of previous business results. Despite this our Adviser was able to layout a strong case to obtain comfort around the client’s success and loan serviceability using her personal asset and liability position, her transferable skills, her business plan including projections and the positive target businesses financials.

The Outcome

Much to our client’s delight, our Adviser secured a fantastic deal meeting all her needs. The deal was agreed on the basis that the commercial loan ran on an amortising basis on the same term as the post office contract, which was 10 years. The deal met our clients deposit requirements with the loan sitting at 70% Loan To Value and the rate remained competitive although no tangible security with payments of £755 per month.

Our client’s new chapter could begin and our Adviser was delighted to help her make it happen.