£600k loan supports scaffolding company in complex restructure

One of the North West’s leading providers of scaffolding and scaffolding services is on solid ground following a £600k loan as part of a complex restructure. Today the business is back on track with a boosted bottom line and a growing team.

As a storybook lender, Reparo can support SMEs where mainstream banks can’t – or won’t. That was the case for Interscaff Holdings Limited and P.D.L, one of the North West’s leading providers of scaffolding and scaffolding services.

The business has been trading for over 30 years, working on commercial, industrial and domestic projects across the country.

It’s complicated

In June 2022, P.D.L were looking to secure a cashflow loan of £325,000 to support the restructuring of the business which was due to happen in August 2022. The directors wanted to ensure they had sufficient working capital to see through the transition to a new trading business.

A new company, Interscaff Holdings Limited, was to be used to invest monies into P.D.L to continue the operation of the business while the restructuring could be finalised.

Derek Lewis, Director at Interscaff Holdings and P.D.L, said: “We needed medium-term funding over two years to allow us to restructure the business and secure the assets within a holding company, whilst continuing to trade the operational company – something that mainstream banks can’t help with.”

Before the original trading company was restructured, Reparo worked with the team to provide a secured loan of £325,000 to the holding company, Interscaff, with a 24-month term, using the owner-occupied commercial property, owned by the directors, as security.

Hit a hurdle, find a way

However, the commercial property that the company wanted to use as security already had a mortgage secured against it by another lender. The lender was also not willing to advance any further funds or consent to Reparo’s second charge.

Reparo’s solution was to provide the company with an increased loan value of £600,000 – £275,000 to pay off the first lender and £325,000 to invest in the restructuring process.

In September 2023 the business was still facing financial challenges so approached Reparo for an additional loan of £200,000. The directors offered additional security via buy-to-let properties, provided financials and forecasts, which enabled the additional working capital to be provided in just a few weeks.

Mr Lewis added: “Reparo’s appetite for controlled risk and the ability to understand our business requirements is what we value most.

“The flexibility of the way the loan was initially structured, the face-to-face interactions and the speed at which the deal was completed were all very impressive.”

“Our dealings with Reparo have been seamless and personable. When we’ve needed further assistance, the team have been responsive and timely. We’ve been in constant conversation with them, as opposed to everything being online as it often is with other lenders.”

Jason Cossey, Reparo Finance Operations Director, said: “We are glad that we’ve been able to help find a way forward for this long-established business. The directors are incredibly hard working and have shown real resilience during a challenging period. They remained open and communicative throughout the process – which is all we ask for as a lender.”

The loan was due to be repaid in June 2024, but a further 12-month extension has been provided to the business by Reparo while the refinance is finalised.

Since the restructure has been completed, Interscaff Holdings Limited and P.D.L have increased their trading activity, improved cashflow and profitability, created new jobs, and put a strong sales pipeline in place.

The directors remain focused on successful trading for the future.

Find out more about Reparo’s structured facilities here: reparofinance.co.uk/reparo-structured/