A growth advisory firm identified that one of their clients would benefit from funding solutions and referred the branding agency to us for help.
The agency was growing rapidly and had doubled its revenues the previous year from around £350k to £750k.
The team was starting to bring in bigger clients on bigger projects.
While revenues were growing there were longer delays between each round of billing, during which time staff and suppliers still needed to be paid.
After getting to know the owners, we identified three areas where funding would benefit their business:
1) Financing client acquisition efforts, such as travel to clients, participation in industry events, and marketing
2) Ensuring they always had funds to pay staff salaries and suppliers
3) Unlocking funds from invoices their clients hadn’t yet paid
They had already given a quote for a standard fixed term loan at 21% over 5 years for £100k with a standard personal guarantee attached.
We were able to source the same £100k at 17% over 5 years.
This better rate came from our strong lender relationships, market knowledge, and ability to highlight the specific information that most appeals to lenders.
The arrangement fee was also lower, saving the client £1,500.
The terms of the loan we negotiated allowed them to make overpayments each month if they wanted to.
This loan was used to enable business development activities and ensure funds were always available for payroll.
In addition, we sourced £210k through an invoice financing product that product that doesn’t require clients to change their payments in any way. With this product, the company didn't have to inform their clients of any bank account changes as it's designed to not effect their client relationships at all.
This was secured against the money their clients owed them on 30-60 day payment terms.
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.
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