This international marketing agency had been serving blue-chip clients around the world for many years. Their fractional CFO, who had worked with us before, reached out again during a period of significant change at the company.
One of the founding shareholders had recently left the business. This led to a change in ownership and the appointment of new directors.
At the same time, the company was shifting from large, one-off client invoices to a more stable recurring income model.
While this new approach would provide greater predictability and long-term value, it meant a short-term drop in monthly revenue and added pressure on cash flow.
The business was profitable and generating around £4 to £5 million in annual revenue.
However, it had previously taken out a £100,000 working capital loan on a 12-month term, with interest just under 6% per month. Although the loan helped with immediate cash needs, the high monthly repayments made it difficult to reinvest or respond to market changes.
With a new leadership team in place, the CFO and directors wanted to refinance the existing loan and improve their working capital position.
From a lender’s perspective, there were a few concerns. A recent change in ownership and leadership can create uncertainty, and one of the new directors was based overseas, which often raises compliance and documentation issues.
To address these challenges, we worked closely with the underwriters. We provided full transparency by submitting additional documents, including proof of address, passport copies, and board meeting minutes. This helped demonstrate that the business was well-governed and had a clear direction.
We then arranged a tailored funding solution. The company secured a £150,000 loan over 24 months at a significantly reduced interest rate of 2.71% per month.
The terms also included flexible repayment, with interest only charged until the loan was fully repaid. Although a personal guarantee was required, this was standard for a loan of this size and was acceptable to the directors.
The business used the new facility to clear its previous high-cost debt and strengthen its working capital. This gave the team the breathing room they needed to complete the revenue model shift and put the new leadership’s plans into action.
25 Green Street, Mayfair, London, W1K 7AX
Risecap Ltd (Company no. 11203916) Data Protection Number ZA553906. The registered address is 3rd Floor, 86-90 Paul Street, London EC2A 4NE. Risecap is a credit broker and not a lender.
We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow. In some circumstances, we do not receive any commission or fee from the lender, we will detail the commission or fee scenario throughout your customer journey
Copyright © 2024 Risecap. All rights reserved.
0203 089 7919
hello@risecap.co.uk
25 Green Street London W1K 7AX
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.
Copyright © 2022 Risecap. All rights reserved.
