£1 Million Grow Line Facility
Posted on 7th March 2019 at 13:40
Following on from Lending Made Simple’s two years anniversary this month, the business is continuing to go from strength to strength.
And now they have yet another reason to celebrate - they have been awarded the Deal of the Week by Growth Street, a London-based innovative Fintech brand.
The accolade was received for securing a £1 million Growth Line facility for a Midlands based construction company. As with many of Lending Made Simple’s clients, the business had previously approached their bank but with little success.
Funding For Growth
The company at the centre of this great deal works with insurance companies and Government bodies on residential maintenance and, over the course of the last 5 years, has grown their turnover from £1 million to £10 million. Realising the business model worked, the business wanted to grow to £50 million by offering their service nationwide.
Due to the nature of the business it was essential that the right funding was in place before expanding - many of the costs from contractors and suppliers needed to be settled upfront so a good cashflow solution was essential.
As they had a good working relationship with their bank this was the first port of call. With a successful business model and healthy turnover, they requested to increase their existing overdraft above £400k but this was refused - Invoice Discounting against their invoices to the value on £700k was the only finance offered. This was too low to support their forecasted growth and didn’t feel like the right solution.
On approaching Lending Made Simple, Director Gillian Palmer sat down with the company to understand their financial requirements. With her experience in business growth, she could see that the bank’s offer was not suitable and would not support their plans sufficiently.
After much research and numerous phone calls, Gillian secured the business a fantastic GrowthLine facility which offers them 85% of their debtors and 35% of their Work in Progress - which equates to £1 million as an overdraft facility. And to add to this, the Growthline will also grow with the business as it expands so there is no worry that they will face the same funding dilemmas again in another few years.
Finding the right funding solutions for your business
Lending Made Simple can offer businesses alternative funding solutions and remove the reliance on standard high street banks. Founder and owner Gillian really believes in building long lasting relationships with her clients, working together to find the right solution for them and help make their businesses a success.
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