Background

This agency had a 10+ year track record of optimising pricing strategies and marketing for large FMCG clients.

They had a stable income of £8 million annually, but were recovering from a challenging previous year.

Around 100 people were employed by them.

Funding request

The CFO needed to get access to money to pay new employees in the period between starting at the company and starting to bill client work.

Other brokers had offered fixed-term loans of up to £250k over five years, all of which required full personal guarantees.

The business would end up paying 12–15% interest regardless of whether or not they used the funding for payroll in any particular month.

The company leaders came to Risecap to explore other, less obvious, options.

How we helped them RISE

Instead of a fixed-term loan backed by a personal guarantee, Risecap instead sourced a revolving credit function of £500k at 8.3%.

This allowed the business to access funds when needed, but only pay interest on what was taken out.

A limited personal guarantee was required due to the dip in revenue the previous year, but the lender was prepared to remove the guarantee once EBITDA improved.

As the business grows, so could the amount of credit available.

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