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Helping an established print specialist to restructure its finances and grow
Over time, historical finance arrangements can become complex and difficult to manage as needs change. For many businesses, a fresh look at the products available and how they are structured can free up much-needed cash and allow them to invest in growth again.
This was the situation an established print specialist encountered when preparing to take up a significant new growth opportunity.
The Challenge
The print specialist was looking to increase its profitability by taking on an innovative new project that had excellent long-term potential, while also reducing its costs.
The company sought to restructure its existing asset finance – a type of loan that allows a business to acquire equipment, machinery or vehicles without paying the full cost upfront. Its aim was to reduce monthly outgoings, generate additional cash for day-to-day operations, and simplify its finances.
However, many lenders require personal guarantees on unsecured lending, with the rates for these often higher than for secured loans.
The company required competitive rates of interest to maximise the savings for reinvestment into its growth.
They needed:
- A competitive interest rate, fixed for a set period
- To secure the loan against existing assets
- Lower repayments to free up cash for reinvestment
Without access to a broader view of the market, the company faced continued higher payments, hampering its ability to grow and pursue new opportunities.
The Solution
The company engaged David Jones, Business Funding Adviser at UMi Get Funding to review its financial position and advise on the options available beyond high street lenders.
Get Funding identified a range of potential products, carefully comparing the company’s requirements against lenders’ criteria and terms.
A specialist lender was identified that closely mirrored the company’s needs, being one of few asset finance companies with a specialist print division and an in-depth understanding of the industry.
The recommended facility provided:
- Around £8,000 monthly saving on the company’s existing repayments
- Secured lending against the company’s existing assets
- A competitive fixed interest rate, alongside the benefits of Growth Guarantee Scheme support.
- Lending without the need for a personal guarantee
The Outcome
The print specialist secured a £702,000 asset finance loan, enabling them to free up cash and pursue the national opportunity they had set their sights on.
With this first phase concluded, the company now has a simpler base from which to continue restructuring its finances to create new revenue streams.
Facing similar challenges with asset finance or commercial funding?
Talk to David and the UMi Get Funding team today to explore your options.