Loan amount: £500k facility
Loan Type: Working capital for growth
Security: Charge on commercial property
Reparo provided £500k to help a logistics and warehousing business with much-needed working capital.
Challenge: A logistics company required capital to ramp up operations quickly. Because this venture was new, securing funding through traditional lenders was going to be a lengthy process. Reparo were able to look at the overall proposition and make a fast decision on providing finance.
The facility is a logistics warehouse that provides storage for online retailers’ products. The business built the warehouse with its own resources but needed growth capital to get up and running as soon as possible.
The outbreak of Covid-19 has caused a boom in the online trading industry, and as a result the warehouse saw an increase in demand, adding to the urgency to get finance in place
Getting financing from traditional lenders was difficult because they were a new company with no trading history. Applying for a loan at the bank could take months to be approved.
Approach: The Reparo team organised a Zoom interview with the warehouse to discover more about the business and their financing needs.
In between the two lockdowns, the Reparo team took a trip to the facility to view the site and meet the business owners. This allowed them to get a better understanding of the business model and operations. Reparo explained to the client how the financing works while answering any questions.
Reparo quickly understood the proposition and agreed to provide finance.
The business had a complex shareholding structure, but Reparo’s experience in dealing with different structures meant that there was no hold-up with completing the AML and KYC checks.
Outcome: Reparo was able to complete the loan quickly.
Reparo provided the business with flexible terms, and the due diligence process meant the facility came pre-approved for future credit lines. This will help the business as it grows by providing it with the option to get additional financing quickly and efficiently.
Andrew Ward, Managing Director at Reparo Finance, said:
“We were delighted to help this client as we quickly saw the business model had solid fundamentals and was well placed to benefit from emerging trends.
This loan highlighted our flexibility and ability to understand complicated business structures quickly. This allows us to provide our clients with a fast financing process, helping them to get financing in place as soon as possible.
Our team is able to take the time to understand a business and how they operate. This enables us to provide them with the right finance for their circumstances”.
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In this climate, it’s crucial that brokers can find bespoke solutions for their customers.
At Reparo, we don’t shy away from urgent or challenging applications that don’t fall into traditional lenders’ criteria because we have the experience and know-how to seek a practical solution.
Our paperwork is clean, simple and easy to understand—making applying for a loan a more straightforward process for SMEs.
To discuss a loan between £25k and £1m, please get in touch with one of the team.