by Conrad Robins | Jul 13, 2024
Background – how the opportunity arose and who was involved
With the help of ASC, a green-fingered couple has saved one of Kent’s last remaining market gardens and realised their dream of owning a fruit and vegetable business.
Paul and Michelle Vesey-Wells are now the proud owners of East Kent Growers Ltd (formally known as Walmestone Nursery) in Kent after ASC’s Alister Golesworthy secured the financing to enable the purchase as sitting tenants. With the eight-acre site and farmhouse up for sale by the owners, Paul, Michelle, and their family faced being left jobless and potentially homeless.
Challenges – financial pressures and time constraints
The hardworking and dedicated couple, who had worked there for nine years, were desperate to buy the business to stay in their cherished home and keep the thriving community market garden alive. So they started the seemingly impossible task of raising £650,000 of finance to buy the business and site.
Entrepreneurially, the couple launched a crowdfunding campaign to add to their deposit. The local community got behind this much-loved local business asset, and the campaign secured an impressive £5,000.
Solution – how ASC supported the process
The couple then sought help from ASC to secure a loan towards the purchase price. Time was of the essence as the owner’s marketing agent was arranging viewings by potential purchasers.
Alister introduced a specialist solicitor, Aly Young Law, who explained how to arrange a third-party share deal to help obtain additional deposit funds via a share scheme, the agreement then being completed by the client’s solicitors. Alister, also approached the agricultural lending team at NatWest, who he knew would see the benefits of keeping the business in local and experienced hands and oversaw the whole process to ensure the deal went through.
Outcome – successful purchase and long-term stability
With Alister’s help, Paul and Michelle obtained a £400,000 structured commercial mortgage and continue to enjoy running East Kent Growers Ltd. The future of their thriving local business is now secure, and they can continue serving their community, from individuals to Michelin Star restaurants.
Alister Golesworthy said, “We live in Kent, so saving this important community asset was a pleasure. If you’re a sitting tenant or have the opportunity for a buyout, we would love to help you. Please get in touch.”
Image credit: East Kent Growers Ltd
by Conrad Robins | Oct 5, 2023
Background – Supporting a trusted local business partnership
Mr Li & Mrs Sasikumar are well known and appreciated clients of the Hampshire, Dorset & Isle of Wight office of ASC Finance for Business.
We were first introduced to Mr Li & Mrs Sasikumar by a trusted introducer in November 2020, to help with their commercial funding requirements.
Since the introduction, we have supported NGG & More Limited, as well as their other associated businesses to obtain commercial finance for their various ventures.
Challenges – Expanding into a new local store after 25 years
Mr Li & Mrs Sasikumar were keen to purchase the convenience store in Water Lane, Totton, as there hadn’t been one in 25 years. Our clients knew there would be a large footfall as it’s close to the centre of Totton, and there would be a local need for the store to open. The shop has been open a few months now and the footfall into the store is ever increasing.
Solution – Helping secure funding for growth and expansion
Mr Li & Mrs Sasikumar, have great plans for the store. They are looking to extend out the back to give greater floor space, which will allow more of a range of products to sell. Our clients’ will be installing a coffee and lottery machines on the premises, to bring in the extra revenue.
Our clients have two other convenience stores which they have brought and are running successfully. Once based in Freemantle and the other is in Regents Park in Southampton.
Outcome – Continued success and lasting client relationships
When asked why they come back to ASC Finance for Business for their commercial finance requirements, our clients advised:
“It is always a pleasure to work with ASC, there is always someone there on the phone to provide the latest update and push the process forward. Dan and Lisa understand every single detail from our side and point of view regarding the application, there is no barriers in communication. It is not easy to find a similar company with the same professional competencies and the level of attitudes.”
Dan Gateshill, Regional Director for ASC in Hampshire, Dorset & Isle of Wight commented:
“We have assisted Yi and Amsadevi on several occasions with their commercial funding requirements. One of the benefits of being a broker is to see how our efforts manifest and assist our clients to achieve their goals. Yi and Amsadevi now operate several businesses in and around Southampton and we are proud to have supported them on their journey.”
You can find out more about Water Lane Store here
by Conrad Robins | Feb 24, 2023
Background – Expanding the business through property acquisition
Our clients, an engineering company, owned two commercial investment properties. They wished to buy a third light industrial property for £1 million adjacent to the two they own where they would relocate their business. Simple you might think, however they needed to borrow the full purchase price plus stamp duty and VAT. They approached their own bank who declined to assist. However, we made a more compelling application to the same bank and were able to demonstrate that they could afford the repayments on the total debt, and that taking a charge on one of the existing properties together with the new one would be sufficient security for them to lend against.
Challenges – Legal complexities with property security
The bank agreed. Valuations were done, signed off and solicitor instructed. The client’s solicitor then informed us of a little-known piece of English law stating that if someone owns a number of adjacent properties, the rights and easements fall away and if the bank had to exercise its rights over the properties being offered for security, then these two units would not have the rights required… The only way was to offer the bank security over all three units.
Solution – Structuring the deal to satisfy lender requirements
Luckily we knew the right people to approach at the bank and this was quickly proposed by us and subsequently executed with the correct caveats and the transaction moved to completion.
Outcome – Successful £1m loan completion
Thanks to ASC’s expertise and lender relationships, the £1m loan was successfully completed, allowing the client to expand their operations and secure their long-term growth. This case highlights how strategic financing can unlock new opportunities — learn more about our Commercial Mortgages and how we can support your next project.
by Conrad Robins | Oct 6, 2021
Background – Helping an architectural practice secure ownership of their premises
Some of the most rewarding cases that we get involved in raising finance for are those where the solution ends up being almost the opposite of where everyone expected it to be from the start. Giles Codrington, ASC Director in London, had one such case recently, which he helped the client to secure finance successfully. Our clients are the proprietors of a well-established business, an architectural practise currently operating from rented premises situated at Old Marylebone Road.
Challenges – Finding the right property and securing funding simultaneously
Our client’s plan was to move from their rented premise above, to freehold offices in North West London. We helped the client secure what they needed, £1,575,000 to complete the purchase of the new offices. We were able to do a first charge over the freehold of the office premises which our client (with an estimated value of £2,250,000) was paying £125,860 per annum in rent, and ASC ensured that the cost of servicing the loan would be the same monthly sum.
Solution – A proactive approach to loan approval before purchase
What was interesting in this case was that the approach the team used to get this favourable arrangement for the client was to get the loan approved in the first instance, before the client had found the property. That meant that he could look for properties with more confidence, speed up the transaction, and thus being able to negotiate the price more assertively.
Outcome – A successful purchase and valuable broker expertise
Giles comments,” This deal really highlights the importance of the knowledge a broker can offer through our service to securing finance for a client’s project. The client would just not have been able to approach things in this way without sound tailor-made advice.”
Is it worth taking a loan to grow your business? Well, that depends on each case. But, in general terms and if your business is viable, funds to help you expand as we see in this case, can mean more space, more employees, and more customers which can be an overall positive step.
As with any other financial product, each case is dealt with separately, and can be tailored to maximise the outcome. If you think your business may be able to take advantage of this type of financial product, please contact your local ASC office for more details.
by Conrad Robins | Aug 20, 2021
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.
