A successful second-hand vehicle dealership who was seeking £100,000 of working capital to facilitate ongoing growth of his business. In particular, the client wanted to purchase higher value stock which would generate greater profit margins. The client had no business assets that could be used to secure against the loan and was a non-homeowner, so no personal assets to be used either – this therefore makes the loan being sought unsecured.
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As the client had no substantial assets that could be lent against, it was very important to understand what the annual turnover for company was, as this would determine what the client could potentially borrow. The client’s business was successfully generating a good turnover and net profits which we growing year on year, which lenders like to see.
We were able to acquire the customer a very competitive unsecured business loan for the full requested loan amount of £100,000, purely based on the company’s turnover. This will allow the company to grow, purchase the necessary stock and ultimately make the business more profitable.
The whole deal took less than 7 days from initial enquiry to funds being released to the client, who was delighted with the terms secured for their business.
Key Points to consider
As a general rule, if the client has assets or is a homeowner, financial providers can often lend between 15% – 25% of the business turnover. However, in this case, since neither asset is available to use as security, the maximum unsecured loan available is normally 10% of the company’s turnover.
Please keep in mind that these are only broad guidelines. Each case is looked at individually and treated on its own merits.
For full details on the types of Business Loans available please visit our Business Loans page.
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