A family-owned engineering business, turning over £20m and operating in over 40 countries worldwide, builds a wide range of equipment from single machines to bespoke solutions.
Their growth over the years has required investment, whether for acquisitions, equipment purchases or larger commercial premises, and the business recognises the value of using finance to support their ongoing development and profitability.

Product

Asset finance is a staple finance product for businesses in the engineering and manufacturing sectors. However, the structure of an asset finance agreement can differ from lender to lender and understanding how the terms differ is imperative to ensure you get the best deal. FundingRound assesses the detail behind a number of asset finance lenders, identifying new players not known generally in the market.

Service

Our client has chosen to work with FundingRound over a number of years when sourcing asset finance options. Yes, they have an inhouse finance team plus a named bank relationship manager, but they recognise that a specialist knows the market inside out and is able to keep track of the most competitive propositions.

This has never been more important for SMEs as interest rates have increased significantly since 2022. The impact on the asset finance market has been immense, with rates changing on a weekly basis at times, and it’s not just dependent on base rate – swap rates also play a part for many lenders. Keeping track of the most competitive rate, combined with the most beneficial terms, when making a purchase, which can stretch over many months, can be time consuming, and our client prefers to lean on our expertise to ensure the best solution is sourced.

Husband and wife team, Joe and Mhairi (traditional gaelic name - pronounced Vaari) are a young professional Glaswegian couple with a passion for the outdoors. Whilst out and about exploring Scotland in their motorhome one day, they came across a stunningly beautiful cottage in Gartmore, Stirling, which was for sale along with an attached successful luxury holiday lodge business called Dreamcatchers ……..and a dream was born!

Joe and Mhairi both have busy full-time careers and, despite having no previous business experience aside from the letting of their own investment properties, they had vision and approached their personal bank for support with purchasing the cottage and business. Unfortunately their bankers could not help them with the finance they required but, having a very close working relationship with us, made the introduction for us to identify the finance they needed and support them with the purchase.

Whilst Joe and Mhairi negotiated with the vendors, we immediately got to work assessing their personal and financial information and researching the market for the best and most suitable solution to help them to achieve their ambition. We quickly realised that the business and the cottage needed to be two separate financial transactions and we worked very closely with Joeann Johnson, Independent Mortgage Advisor, to ensure the commercial mortgage and personal mortgage transactions were as smooth and simple for our clients as possible. In order to raise the contribution they required, our clients also needed to remortgage their existing BTL Investment properties which added a further layer of complexity and meant the overall transaction required the completion of three different product types! No problem!

Having identified a lender with an appetite to lend 70% LTV for the purchase of the whole trading business, we submitted a comprehensive commercial mortgage proposal via the lender’s dedicated Broker Channel, and within 3 working days a Relationship Manager had completed an overview and submitted to Credit! Our support and service did not end at this stage however – we remained in constant touch with our client’s Personal Mortgage Advisor and all parties involved in the various transactions including the selling agent, the lender Relationship Manager and the client’s Solicitor – conscious that, under Scottish property law, a sale can potentially become legally binding at a much earlier stage than under English law. It is fair to say there were challenges along the way, but staying close to the key people ensured these were dealt with quickly, efficiently and collaboratively.

Another notable difference between Scottish and English property law is the speed at which things progress…....fast forward only 4 weeks and our clients became the very proud working owners of their own gorgeous 5-holiday lodge business in the beautiful Stirlingshire countryside! https://dreamcatcherscabins.co.uk/ (Insta: @dreamcatcherscabins – give them a follow)

At FundingRound our priority is customer service, providing the highest level of service and support our clients need to realise their goal, and it has been a pleasure supporting two young, ambitious, hard-working people to achieve their dream – we wish them all the very best in this exciting new chapter!

Our client, Amelio Solar Energy, works within the sustainable energy field, helping business and homeowners reduce their electricity bills and carbon footprint by supplying and installing solar panels onto their buildings. They also have a sister business, installing EV chargers.

The business has seen rapid growth in recent times through successfully securing large contracts with schools and hospitals and, as a result, needed larger premises. Richard Jones, managing director of Amelio, made a decision to buy a commercial property rather than continue to rent and was advised to buy through a SIPP (self-invested personal pension).

Richard knew of Funding Round from a previous discussion and when his financial adviser recommended us he decided we were the broker for him. Why waste energy talking to anyone else?!

Product

Buying commercial property through a SIPP is a very tax-efficient way of purchasing but much more complex from a commercial property mortgage perspective. As a broker there are multiple people to deal with - the client, the lender, the pension provider and the vendor – and a far higher level of scrutiny and regulation to be complied with.

It requires a commercial finance broker with experience, expertise and knowledge of commercial mortgage lenders – that’s where Funding Round excels. We found a lender that not only offered a good rate but was happy to lend a relatively small amount without early repayment penalties.

Service

Whilst Richard Jones and his team at Amelio Solar Energy focused on continuing to grow, Funding Round took control of the deal and moved the project forward. Whilst frustrating at times, with valuations and regulation slowing the process down, Richard very much appreciated the role that we took and the time that we invested in getting the deal over the line.

We smoothed the path for all those involved, ensuring that the client, the lender, the vendor and pension provider were all happy with the final outcome. And, we took the time to find a lender that dealt with smaller lending amounts (most lenders aren’t interested unless the mortgage amount is over £150,000).

Richard sums up how he found working with Funding Round,

"Buying commercial premises within your pension fund seems like a simple idea, but in reality it’s surprisingly complex! The complexity was further exacerbated by it being a new build. Funding Round secured a product that was well structured for my needs, including no early repayment fees which is a real bonus. But more importantly, Lucy took personal responsibility for updating all parties throughout the process, ensuring that no detail was missed and resolving issues to get the completion over the line. Without a shadow of a doubt, Lucy’s contribution saved me an immense amount of time, effort and energy!  The team at Funding Round are definitely to be recommended!”.

Just like Amelio and its green energy solutions, Funding Round provides the best solutions for optimum performance and maximum financial returns.

 

Our client, a husband-and-wife partnership, has spent the last 40 years successfully growing their food-led hospitality business with a small B&B property adjoining, which plays a large part in the Lincolnshire tourism economy. The impact of COVID closing down their business overnight, required them to completely restructure the business finances as they could no longer afford the monthly repayments for their commercial mortgage and working capital facility.

Our intervention identified their eligibility for a remortgage under the CBILS wrapper, but the debt serviceability could only be met with a 25-year term. The age of our clients meant a term could only extend to 20 years. We discussed their succession planning options, and they decided to bring forward their plans of making their daughter the third partner, so enabling them to take advantage of the longer-term mortgage.

Their application was not a smooth one, however. Initially they were declined due to an adverse credit score. As with many businesses, they had opted for a 6-month repayment holiday at the beginning of the pandemic. Their lender incorrectly registered the repayment holiday as arrears, so having a detrimental effect on their credit score. We identified this anomaly and supported the client in resolving this, turning the decline into an approval.

Our support has meant our client can continue with their family business, despite the long-lasting restrictions experienced by the hospitality sector. This resulted in much improved monthly repayments, firstly reduced by 70% and secondly under the CBILS wrapper, no payments were required for the next 12 months. Furthermore, this significant reduction still provides the same working capital facility through the remortgage. Without doubt, this approach to finance restructuring has allowed this long-standing family business to continue to operate, rather than close its doors forever.

Our client purchased land in a city centre in 2007 and operated a car dealership from it for 12 years. In 2019, after securing planning permission to develop the site to build 28 apartments the client moved its car dealership to another location. A deal to sell the land was agreed early 2020 but as the Covid-19 pandemic took hold the deal collapsed.

The client re-purposed the site for investment and was successful in attracting quality tenants.  However, the switch to investment use meant the client needed to exit the development finance within 6 months and were put on notice of this by their funder.

Product

FUNDING ROUND secured a commercial investment mortgage within the CBILS (Coronavirus Business Interruption Loan Scheme) wrapper for the client. This took some time and was beset with unforeseen issues - the decision took two months to come through due to lender volumes, in the meantime tenants had found other sites and needed to be replaced.  The land valuation came in lower than expected and within 48 hours of the completion deadline one of several tenants required to meet affordability criteria changed their mind and wouldn’t sign the lease required.  Thankfully, the site is in high demand and the client was able to replace them and get a lease signed in the space of a morning.

The deal went to the wire and was completed at 4pm on deadline day of the CBILS scheme, much to everyone’s relief!

Service

Our client was referred to us by a business contact who knew FUNDING ROUND specialised in sourcing commercial finance for more unusual and difficult property arrangements. Julia Wilkinson and the FUNDING ROUND team supported the client in negotiating a longer and staged exit with their current lender, implementing formal leases with tenants to support the required affordability and worked tirelessly with the lender to ensure the deal could meet their guidelines.

Had FUNDING ROUND not been able to complete on this deal, the client’s previous lender would have auctioned the land to recoup their loan and the client would have lost its investment. The client has now been able to re-mortgage and has benefited from no arrangement fees and no interest for 12 months. They are making a good rental return on the land and have even opened a second site for their business on the site.

Almond Financial Ltd is a Lincoln-based team of financial advisers, specialising in pensions, investments and mortgages. The company prides itself on helping its clients to thoroughly comprehend their financial situation and the options available to them by eliminating unnecessary complications, offering a bespoke solution and handling finances with integrity and care.

Product

Why would a financial services company ask a commercial finance broker to arrange a loan for two company vehicles? Because it appreciates the expertise that a commercial business broker can bring to a credit arrangement.

Sam Robinson of Almond Financial Ltd first met FUNDING ROUND’s Julia Wilkinson eight years ago when they both worked for the same high street bank. He was impressed with her knowledge of commercial funders and immediately knew that Julia would be the right person to talk to when sourcing credit to buy two Tesla electric cars for the business. Both Sam and Julia share a common approach to business, providing excellent customer service and the best solution to a client’s requirements.

Service

Almond Financial had been quoted an interest rate of 9.9% on a commercial loan with fixed repayment terms. FUNDING ROUND, through its knowledge of business lenders secured a deal, almost immediately, that was half the interest rate and offered with flexible repayment terms. Not only did Julia secure the loan but she dealt directly with the car dealer, ensuring the whole process was speedy and efficient (just like the client’s Tesla car!).

Trent Hire & Sales is an independent, experienced plant and tool hire company, with a proven track record of excellent service and reliability – a one-stop-shop for plant, tool hire and industrial supplies. Based in the heart of Retford, they have been providing industry-leading tool, equipment and plant hire to the Nottinghamshire and Lincolnshire region for over 25 years and have worked hard to achieve their reputation as an honest and trustworthy supplier who are easy to deal with. They know the importance of customer service and loyalty, and by focusing on that, they have been able to develop and maintain long-lasting client relationships. For example, they make sure equipment is delivered when they say it will, and as every tool and piece of equipment is checked on return, everything is in working order for the next customer. These may seem like small things, or even what is expected – but it is surprising how often this doesn’t happen elsewhere!

Product

So why go to a finance broker and not directly to their bank when needing to finance new equipment or use the suppliers finance deal? The directors of Trent Hire & Sales have known Funding Round director, Julia Wilkinson, for some time. Julia had worked with them in a consultative way throughout a management buyout process in 2016 and helped them understand the challenges and opportunities they have with their business finance. She has the same focus on top customer service as they do, and recognising these common values, they trust the advice and service which Julia offers them. So, when it came to purchasing two new Isuzu D Max 4WD vehicles to replace older and less effective vehicles, there was no question who Trent would turn to – Julia!

Service

The Directors needed to get on with running their own business, rather than spend time working out where best to go for finance. Funding Round’s asset finance specialist, Ray Purvis, reviewed the business position alongside the requirement for the purchase. He positioned the information to various challenger banks to attain the best deal for Trent Hire & Sales – quickly sourcing a deal which was more attractive than the supplier’s. But deals don’t always go smoothly! Having agreed a competitive rate, there was a delay in vehicle delivery. Unfortunately, this fell at a time when the banks were changing their rates, meaning a more expensive outcome for Trent Hire & Sales. Ray of Funding Round says, “Whilst bank rates have been low and relatively stable over the past few years, the current climate is showing more volatility. I could have just explained this to Trent, resulting in a more expensive finance deal for them. But that’s not the way we do things in Funding Round – we are all about excellent customer service, and I was sure I could find them a better deal despite changing rates from the banks. So, I did!” Ray was able to identify a different challenger bank who was prepared to retain the lower interest rate despite the later delivery date. A Win Win – new business for the bank and a cheaper finance option for Trent Hire & Sales!

Our client Rorla Designs had recently started up their own business, manufacturing bespoke furniture. Having been in the trade for many years they knew their market and had identified a gap in the wholesale market which they wanted to take advantage of.

Product

Manufacturing requires equipment, and whilst much of the bespoke furniture is made by hand, specific tools and cutting equipment make the process more effective. Rorla knew they needed certain tools to fulfil their ever-growing order book, but cashflow meant outright purchasing was not an option, even for relatively low-cost items.

Service

Finance options for newly established businesses are hard to find, particularly for smaller amounts of working capital finance. We were able to identify the potential options for Rorla and steer them through the process. Happily they secured the funding, which they were able to use in conjunction with a regional grant, and their purchases have enabled them to keep up with the orders coming in from the increasing list of trace clients.

Our client is a seasonal business in the leisure sector, with their prime activity being one which typically most lenders have limited appetite for. They needed a loan structure that would reduce their monthly repayments and significantly increase the cashflow to support their growth plans. Having discussed their plans with their bank, the bank suggested they speak with us as they were unable to offer a loan structure to suit their requirement.

Product

We took time to fully understand the client needs and the impact the solution would have on the business and their lives.  This was important as the options to increase cashflow were limited, and this was their livelihood and home we were considering. We sourced a product that gave the client an additional 10 years on the term of their commercial mortgage.  We found a lender that could offer this at a very competitive price without disturbing their core banking relationship.

Service

The key benefits the client cited using FUNDING ROUND were time and cost. They wanted to refinance as soon as possible so they could start improving cashflow before the winter season – a quick turnaround was therefore necessary and we project managed all elements of the deal to achieve this. We were mindful of the costs associated with the transaction - after all, the purpose of the exercise was to improve cashflow.  We took care to ensure the client wasn’t committed to legal costs until each aspect of the valuation was approved - there is no point paying for output not satisfactory for the lender the deal would not proceed. Furthermore, we were able to introduce them to commercial solicitors with the experience needed for the transaction who would work at a competitive fixed price! Putting this new commercial mortgage in place has enabled them to invest more into the business to achieve growth, increased profit and make the business more sustainable for the long term.  They are now on track to achieve their business goals!

Client

Our client is an established residential developer in Lincolnshire. Notwithstanding their past experience, they wanted professional support to secure funding for the first phase of their development (six houses) with GDV of £2m. Key priorities for them were to get higher leverage funding at a competitive cost in the ever-growing market for development finance.

Product

The ultimate outcome was the required finance to achieve the land purchase and commence build with FUNDING ROUND supporting the client throughout the course of delivering the funding package. This entailed:

• assistance with initial structuring of the proposal including complex land purchase arrangements
• provision of funding illustrations on different assumptions relating to phasing approach
• preparation of the detailed funding request
• review of a range of lenders’ risk appetites for the deal
• provision of a comprehensive comparison sheet for our client’s consideration and discussion
• coordinating and attending meetings with the selected funder
• overseeing the required documentation and delivery process, including Valuation and Monitoring Surveyor reports