£60,000 Raised for Engineering Firm Asset Refinance

The Challenge

A Norfolk-based engineering firm was introduced to us by their accountants, who expertly spotted their need for our support. They approached us with a need to improve monthly cashflow and reduce expensive borrowing. Their existing finance setup included:

– Several older pieces of unencumbered equipment

– A leased machine with high monthly payments

– An overdraft facility with repayments being made simply covering the interest element

– 3 loan facilities: 1 a Bounce Back Loan from COVID, 1 with a personal guarantee at a higher rate, 1 utilising the government Recovery Loan Scheme.

The Aim

– Improve the overall cashflow allowing headroom & investment elsewhere in the business

– Don’t increase personal guarantee exposure

– Spread the debt over a longer period if it meant reducing monthly commitments

Ultimately the firm wanted to restructure to better position themselves to grow in the near future

Our Approach

We assessed the existing business structure, debt, cash flow, business model, route to market & short-term plans. This led us to structure a refinance facility using nine business assets, including some legacy equipment. Here’s how we made it work:

– Raised capital against 8 unencumbered assets

– Purchased the 9th asset from an existing lease

– Used the funds to clear expensive debt and restructure payments

The Outcome

– 💰 £60,000 raised

– 📉 Monthly cashflow improved by £1,150

– ✅ Overdraft cleared

– ✅ High-interest loan reduced

– ✅ Leased machine refinanced with ownership at term end

– 🔒 No increase in personal guarantee

The Impact

This refinance has given the client breathing room to grow, invest, and operate with confidence. We wrapped up the deal with a clear summary and left them feeling positive about the future of their business.