Purchase of Established Business
We were asked to assist a client who wished to purchase an established wholesale business. He had a small cash stake and a good asset base but not enough to cover the total purchase price and cashflow requirement of the wholesale business. Unfortunately at the time our client was not eligible for the DTI loan scheme.
Although the wholesale business had good historic accounts and our client had good business knowledge and qualifications, he had never run his own business. He had, however, written a good business plan demonstrating the ways in which the business could be improved and illustrating achievable growth and profitability forecasts.
Within 48 hours we had arranged finance from a High Street bank for the purchase of the business. We used a secured loan for approx £200k with a variable rate and a second unsecured loan for approx £35k on a fixed rate. We also arranged invoice discounting to be included in order to facilitate cashflow.
