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Business Loan Case Studies

Read our selection of business loan case studies

Author: Gary Hemming CeMAP CeFA CeFA CSP

20+ years experience in business loans

ABC Finance Ltd offers expert, unbiased advice and, due to our strong relationships with a trusted panel of lenders, we can source the best rates and products to match your requirements. We are dedicated to helping you find the right business loan to meet your needs.

To give you a better idea of the types of service we offer, we’ve put together a series of case studies focused on successful business loan applications. This is to provide you with some context of real-world scenarios and demonstrate the level of commitment to customer satisfaction shown by our team.

Looking for more information what’s available? Check out our guides and get answers to the most frequently asked questions on business loans.

Case Study 1 – Funding Growth in the Care Sector

Our client initially contacted us as they were struggling to secure funding from their bank, despite having an excellent track record and strong underlying profits. The business was an established co-operative housing network which was in a period of growth. They provided innovative housing solutions to those in real need, such as care leavers, vulnerable adults and others who are in need of support.

The client contacted us with a view to securing a cash injection for their business, as the cost of expansion was putting a strain on their cash flow.

The application was made more difficult as the business was set up using an unusual structure. Although it was a Ltd company, it was limited by guarantee rather than shares. This left us with very few lenders to choose from and a complex application procedure standing between us and the funds that our client needed.

The Solution

Along with obtaining the appropriate documents, accounts and taking time to fully understand the company structure, we were able to successfully fund the application through a specialist lender within the client’s desired timescales.

The funds were released, allowing the client to take their business forward, meaning more secure housing for vulnerable people.

Loan Offer

Loan Amount

£30,000.00

Rate Offered

11.2% per annum

Term

60 Months (5 years)

Monthly Repayment

£700.09 per month

The Adviser’s View

Whenever an application completes, it’s always satisfying. When you know that money will be used to help vulnerable people directly, it’s even more rewarding.

The prevention of homelessness is a really important issue and I’m absolutely delighted to play a role in that, however small.

The application posed a particular challenge as the company structure was relatively unusual but, in the end, we secured a positive result for the client.

Case Study 2 – Investing in Business Property Expansion

Our client approached us as they wanted to expand a property in their company name. The company specialises in housing vulnerable and homeless people in Birmingham and is both socially responsible, and profitable.

The business provided bed spaces for 109 vulnerable adults, across 19 properties.

This housing was helping people with a number of issues such as addiction, mental health problems and homelessness. Our client was looking to increase the number of people they could help by extending the property, adding three further rooms.

They had received a number of quotes and had received the required planning permissions, and as such were ready to proceed. Unfortunately, they had been let down at the last minute by another lender and left with an urgent funding gap, which had to be filled.

Without the funds needed to pay the building team, the contract would be cancelled. This had the potential to become a major setback, leaving the client looking for a building contractor who wasn’t currently in contract, or accepting severe delays.

The Solution

The client had only one week to raise the required funds, meaning time was of the essence.

Due to the very short timescales, an unsecured business loan was agreed upon as the best route to take. This would enable the client to draw down the required funds in around five days, allowing them to fulfil their obligations to the contractor.

The business loan was completed within the five day target, meaning the client was able to move forward with the extension of the property.

Loan Offer

Loan Amount

£32,100

Rate Offered

7.9% per annum

Term

60 Months (5 years)

Monthly Repayment

£649.34 per month

Case Study 3 – Supporting Cash Flow in the Retail Sector

Our client runs a 24-hour convenience store in Hammersmith and, as their business had grown over the last 12 months, they had taken out a number of loans. In an effort to support cash flow during the period of rapid expansion, the client had accepted a number of loans at high interest rates.

These high rates were coupled with inflexible repayment structures. As the business continued to grow, the monthly payments were putting the client back into financial difficulty.

Although the business was fundamentally profitable, cash flow was making the current position impossible to manage.

The Solution

By undertaking a detailed review of the client’s current borrowings and carefully plotting a better route forward, it became clear that a refinance of the existing loans was the best option. This would allow us to reduce the interest rates charged and movethe debt over to a more affordable monthly payment.

The refinance involved transferring the debt onto a new unsecured business loan, over a term of five years. This would allow the client to improve cash flow and avoid the need to keep taking on new debt due to a lack of working capital throughout the month.

After comparing rates from across the market, we quickly identified a lender and were able to issue indicative terms to the client. They were happy to proceed, and the application was fully submitted to the lender.

The loan completed in under a week, releasing a small amount of money to expand the business and the rest was used to repay the existing debts.

Loan Offer

Loan Amount

£80,250.00

Rate Offered

21.9% per annum

Term

60 months (5 years)

Monthly Repayment

£2,211.86

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