Background – Helping a plumbing business expand its premises in London
Giles Codrington, ASC’s Director in London has recently helped a bathroom and plumbing business in London to secure funds to help their expanding business, and purchase the property next door.
Challenges – Turning a rental situation into a purchase opportunity
The clients owned their showroom but rented the property next door, but the property came up for sale and we were able to raise the full asking price of £950,000 by combining the two properties together. We structured the loan for our client to make it the best possible deal for them.
Solution – Structuring finance for long-term growth and stability
The final deal has the borrowing costs beat the rental payments that the client was paying before to rent the property, thereby improving the business cash flow allowing them to prosper further and save money in the long run. By securing the loan for them, ASC has allowed them to reinvest back into the business for further expansions which can also mean a better IT system for a better customer experience, among other improvements.
Outcome – A cost-effective deal that strengthened the client’s business
Giles comments, “we always want to add value for our clients and present their application in the best way we can with the assets they have available. Not just so that the bank will say yes, but also so that the client gets the most cost-effective solution they can.” In this case, we were able to identify the best financial opportunity for our client. It is always a pleasure to help businesses grow by enabling their cashflow to increase by purchasing instead of renting. Many businesses have benefitted through time with ASC’s help to purchase over renting as it can lower the costs, and improve cashflow.
If you are thinking about expanding your business, buying a new business or organising a new finance structure, then talk to ASC. You know the banks that don’t lend; we know the banks that do.
