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CLIENT CASE STUDIES WHERE OPEN 4 BUSINESS FINANCE HAS ARRANGED FUNDING
A landlady contacted us as she was given the opportunity to purchase the freehold of her pub at a discounted price. She had limited personal funds to put into the purchase and her bankers would only fund 70% loan to value. We secured 90% funding for her and now she is the proud owner of the pub, this deal completed within 3 weeks. We were recommended to a privately run hotel and public house which had suffered severe cash flow pressure due to an expansion program which had overrun from a cost perspective. The company’s bankers were not prepared to support the situation any further and creditor pressure was building up. £1million of funding was arranged to repay the bank in full despite losses within the accounts, and a number of CCJ, s. Additional monies were provided to complete the expansion programme and the hotel is now fully operational on a profitable basis. What’s more additional funds have recently been provided to purchase an adjoining property which adds significant marriage value to the overall business. We were recommended to a new client, who had sought funding from their bankers to build 6 letting rooms adjacent to their pub, which they had just received planning consent for. Their bankers were unhappy to advance further monies as their trading accounts showed losses. We were able to raise £700,000 to repay the bank and fund the extension in stages. The client was delighted as occupancy of the rooms has been virtually 100% since completion, which has led to a significant increase in bar/food takings as well. We were introduced to a vegetable grower who was suffering severe cash flow pressure due to a very poor harvest, and had lost the support of his bankers. Cheques were being returned, and creditor pressure meant that CCJ’s were accruing against the company. £1.7Million of funding was arranged to repay the bank in full and provide additional working capital to repay all creditors in full and inject necessary funds into cash flow. Strong performance in the spring plant sales side of the business has enabled the directors to build sustainable cash reserves to see the business through the winter period this year should they suffer another poor harvest. A client was introduced to us who had approached his own bankers to fund the purchase of a pub at £250,000 which was 85% LTV. Whilst his bankers were prepared to support 50% LTV they were not prepared to lend anymore. We arranged funding of £250,000 (85%LTV) with completion taking place within 3 weeks. We were referred to a cheese manufacturer who was in desperate need to expand premises to comply with health and safety issues within the business and to house a far more streamlined production system. Catch 22 was that the bankers to the business were not prepared to support additional funding which ultimately meant the company could not expand and thus increase production and profitability. £1.2million of funding was arranged to repay the bank in full and fund the expansion program and provide additional working capital to promote new food lines. Funding was arranged despite arrears with the bank, unpaid cheques etc. Business is now trading profitably, and fully compliant from a health and safety viewpoint. New food lines have proven a great success as well. We were contacted by a wholesale business that had suffered company losses for the second year running and consequently had lost the support of their bankers. Funding was required to pay pressing creditors whilst management action was taken to significantly reduce company overheads. £1million of funding was arranged to repay the bankers and clear all creditors. Significant improvement has been seen to cash flow and thus the company is now trading profitably again. We were recommended to a baker who had a chain of retail shops. Trade had suffered over the past couple of years due to supermarket competition and the business had lost the support of its bankers. The client sought planning approval for conversion of one of his buildings into residential flats which was approved. We were able to arrange £600,000 of funding to complete the build. Client has now been able to reduce his retail debt significantly from the profit on the development and the retail business is now trading profitably. We were introduced to a cattle trader who wanted to expand his existing holiday cottage business on his farm site. His current bankers were not prepared to support the expansion in view of poor trading history for the cattle business. £1.2million of funding was arranged to repay existing bankers and to fund the build of 4 new cottages. These buildings are now complete and already fully booked for the 2007 summer season. Strategy is to obtain further planning to expand site even further over the next 12-18 months. We were contacted by a retail shop owner who owned his property outright. He was seeking funding to develop another property that he owned, however his bankers were not prepared to lend for development purposes. We secured £300,000 and the case completed within 10 days. We were referred to a client who was looking to purchase a redundant farm, with a view to development of the out-buildings, to turn the site into a holiday cottage complex. The clients were already in the holiday cottage industry, with a site that they had built from scratch initially. Bankers were not prepared to fund in view of the fact that planning had not be obtained on the new site albeit that the current site had limited borrowing against it. £750,000 of funding was arranged against the existing site which enabled 100% of funds to purchase the new site, and cover all fees, including stamp duty. Additional funds were then arranged to commence the build program as well.
beauty salon from owned premises. She had approached her own bankers who were only prepared to support funding of £100,000, which was 50% LTV, whereby she required £170,000 (85% LTV). We were able to arrange £170,000 in a very short space of time, delighting the client and satisfying her lifelong ambition in the process.
Various banks had turned down the application due to limited experience in the industry, despite the fact that the site was a profitable one. £850,000 of funding was agreed (70% LTV) which enabled purchase without the need for a comprehensive business plan. Client has already made alterations to site and obtained planning for restaurant since occupation, and already fully booked for the 2007 summer season.
was tenant of, which he planned to convert into flats. Long term funding was not appropriate in this case as the development would be completed within 12 months once planning had been passed. Bridging funding was arranged to purchase the site, and to commence the building program once planning had been approved. Funds were drawn in stages in line with architects sign off / valuation uplift. Client had secured 50% pre sales prior to commencement of build. However as a full back position buy to let funding had been approved on the remaining flats once completed, which enabled repayment of the bridging funding at the earliest opportunity.
conversion of 10 barns. The site came with a farm house and 50 acres of land. The client was aware of the potential, however could not get his bankers to agree to fund the purchase. Utilising other security as well, bridging funding was arranged to 100% purchase the site, and commence the conversion of the farmhouse and the first block of barns. The farmhouse was subsequently sold for more than the whole site cost initially at auction. Buy to let mortgages were then arranged on the first block of barns which enabled full repayment of the bridging facility and sufficient monies to complete the remaining build of the site.
background. Site was 8 cottages and main house. Once purchased planning change of use was granted from holiday usage to full time residential dwellings. This had a significant uplift in value to the site and residential funding was then arranged on a number of the cottages which enabled full repayment of the bridging monies. The business continues to trade very profitably.
in view of bulk purchase. Bridging funding was used to purchase the flats lending against true value rather than purchase price. Once purchased, funding was then arranged on a buy to let basis repaying the bridging funding. Using the bridging route against true value rather than purchase price enabled the proposition to be 100% funded.
Our Commitment
Due to the fact that our management team have spent many years relationship managing hundreds of businesses from various industry sectors, they have a clear understanding of client strategy for their businesses. They truly understand the frustrations that many businesses encounter when trying to raise finance via their bankers. This could be in a start up situation, or well established businesses looking to expand or simply a business looking to restructure due to cash flow issues. At Open 4 Business Finance Ltd, we seek to satisfy the financial needs of all customers despite their trading background, credit ratings, potential arrears etc. So give us a call today to see how we can turn your business around. We are waiting for your call. |
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