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Restructuring debt to lower repayments

A different brokerage had advised this company to take out an expensive loan. This can happen when brokers offer only a limited range of products, or are incentivised by higher commissions. That’s not the way we work at Risecap. Instead, we sourced a loan that reduced their monthly payments by £3k.

Background

Across its many divisions this enterprise provides refurbishment, relocation, security, and maintenance services for commercial sites.

Current clients include blue chip companies.

They have strong ambitions to service even more contracts and grow the business.

Funding request

The company had diverse revenue streams and strong growth, turning ove £4.2 million the previous year with a net profit of £244k.

They had an existing expensive loan of £125k over 24 months at 29% interest. Their cash flow was under pressure from servicing the loan costs of £8k+ per month.

The management team needed funds to take on more people to work on new contracts.

How we helped them RISE

We suggested restructuring their existing debt using a £200k loan over 60 months at 13.3%.

With this new product in place, their monthly repayments fell to under £5k and the extra cash enabled them to immediately take on more team members.

The new contracts put them on schedule to reach £6m+ in revenue.

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Continued support

We additionally supported this business free up cash by putting in place invoice financing. Read more>

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