Ross Hyde
Categories:
Unsecured loan, debt consolidation
Spec
| Industry area | Loan amount | Turnaround |
| Business services | £210,000 | 7 days |
Situation
A business connection approached me to discuss consolidating their business’s existing debts, and giving their working capital a boost. They have grown the business rapidly in recent years, and had a number of small, short-term loans, which were eating their cashflow every month. They asked me to explore options around an unsecured loan of £100,000, but were unsure whether that would be feasible for lenders.
Strategy
I consulted several of my partners, and was able to find a really good rate, which I took to my client. However, my loan partner was also happy to offer them a larger loan, at a highly competitive rate. This was based on the financial details of my client’s business, and the lender believed it might be useful to them as a longer-term solution.
Solution
My client was very interested in taking a larger loan, and agreed to borrow £210,000. This enabled them to gather more of their debts into a single payment, and free up their cashflow. The term is five years, which means that they can predict their expenditure, longer term. It also allows them some leeway to accommodate unexpected outgoings, and be proactive with costs such as repairs and upgrades, rather than reactive. They plan to grow the business further, in the coming years, and this will help them to do so from a firm footing.
The deal was completed over the Christmas period, and once agreed, the money was in my clients’ bank in 24 hours. It took less than seven days to arrange.
Where debt repayments are being made to several different lenders, it can be sensible to consolidate, as my client did. If the current situation is a number of high payments for short term loans, making a single monthly payment across a longer term can be great financial sense.
