This startup provides male grooming services and products in high traffic shopping malls.
The founder was keen to ride the growing wave of demand for convenient, high-quality barbering services and establish a loyal client base in new areas before the competition. .
The founder wanted to consolidate several high-cost, short-term loans and get additional funding to buy stock and continue opening new kiosks.
He already had three short-term loans in place totalling £65k. The annual interest rates were around 37% and monthly repayments were over £6k.
We initially reached out to Community Development Finance Institutions (CDFIs). Unfortunately, the small financial benefit of working with a CDFI quickly became heavily outweighed by the time it would take to provide all the required financial information.
As a faster alternative, we approached a different lender with which we have a long history of working. This relationship meant that when we faced a further setback - the request for £100k was rejected - we were able to get feedback: the underwriters wanted evidence of equity that would cover the whole loan amount for the personal guarantee.
The Risecap team presented evidence that there was £79k of equity in the property owned by the business founder. This opened up a loan offer of £75k, which would consolidate the existing high-cost loans, provide some immediate funds, and save over £4k on repayments every month.
Next, we worked with the client to assess whether this alternative would meet their business needs, and found that it would.
The final loan amount was for £75k at 17.4% over 60 months, with monthly repayments around £2k.
0203 089 7919
hello@risecap.co.uk
3rd Floor, 86-90 Paul Street, London EC2A 4NE
Risecap helps businesses access business finance, working directly with businesses and their trusted advisors. Risecap typically receives a commission or finder’s fee from lenders which will be clearly outlined. The amount of commission received may vary depending on the product or lender chosen.
0203 089 7919
hello@risecap.co.uk
3rd Floor,
86-90 Paul Street,
London EC2A 4NE
Risecap Ltd Data Protection Number ZA553906. The registered address is 85 Great Portland Street, London, England, W1W 7LT. Risecap is a credit broker and not a lender.
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