Background

This small IT company was run by a husband and wife team.

They were looking to pivot their business to a new service of cybersecurity for SMEs.

They urgently needed to fund the purchase of a high value website domain name relevant to their new business.

They wanted to restructure their existing debt.

Funding request

Annual revenues had fallen from £400k to £230k.

This was driving their move into a new service and sector.

Their existing business debts amounted to £40k to be repaid over the next five years.

The office they owned and worked from was worth £360k and had £42k remaining on the mortgage. The building included living space upstairs in a state of disrepair.

With falling revenues and existing debts with high repayment amounts, most lenders would not consider them.

The couple were under time pressure to secure the new domain name.

How we helped them RISE

We developed a new business plan with them where they would use their commercial property to raise funds in the short- and long-term.

Initially, we sourced a property finance secure bridging loan for £120k over 12 months at 0.9% per month.

These funds were used to buy the domain name, pay off the existing loans that were on higher interest rates, hire new cyber security experts, and renovate the living space above their office from a 1 bedroom to a 2 bedroom flat.

The flat was then rented out to generate additional income of £2,100 per month.

Under the new circumstances, we set out to refinance the bridging loan as a 20 year semi-commercial mortgage with a bank, with low monthly repayments.

With creative and timely financial support, the business successfully moved into cybersecurity and their revenue forecast is up 30%.

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