Where do you go with a complicated case, where the client is looking to fund cashflow but, due to covid, the business is loss making and has little by way of asset base? A question faced by many brokers in these challenging times.
Stephen Hare, of ICAN Finance, and AR with Connect, had just such a case. Having looked at invoice finance, exiting bank support and even the government’s new Recovery Loan Scheme (RLS), she was getting nowhere. However, FinSec were a relatively new addition to Connect’s panel and Sales Director, Kevin Thomson, suggested they may be able to help.
Client had ample equity in her home, to provide security for the £100K loan that was being sought, and a pipeline of work that was growing as we emerged from lockdown, and this formed the basis of the case submitted to FinSec. Client had struggled to raise the necessary funds elsewhere, hence why it landed with FinSec. Following FinSec’s underwriting and due diligence, there was no adverse in the company and project turnover and profit via accountant’s verification was healthy. Accountant confirmed active trading and forward projection, which showed profitability in 2021 and sufficient turnover to service the loan. Finsec was able to provide a secured loan over 15 years with no payments for the first 6 months, taking a second charge over the client’s residential property.
“They were a breath of fresh air,” said Stephen, “the whole process seemed geared as to how they could construct a deal. There were a few challenges along the way, but each was met with the same attitude and that helped us do a complicated deal in really good time.”
Kevin Thomson added “ this won’t be the answer for every case but it is great to hear positive feedback, from both the client and the AR, and FinSec is another important option available to our growing network of advisors.”