David’s company has owned an adult only campsite in excess of twenty years and decided to invest in a new shower block costing £50,000 plus VAT. The site comprises of five acres of beautiful land owned personally by David accommodating sixty pitches, a public house and a flat.
The cost of heating the pub, flat and shower block was becoming significant so David investigated the costs and benefits associated with acquiring a 20kw roof top PV solar system for the new shower block and a containerised ETA biomass boiler. The total cost of the renewable equipment was £100,000 plus VAT.
David’s reserves of cash were depleted due to his investment in a new shower block and he did not wish to go to his bank for a loan for the renewable equipment as the bank would require a legal charge over his land.
The financial accounts relating to David company which ran the campsite were modest and David knew that he would need to find a finance provider who would look at not only the net income from his company which ran the campsite but also factor in the rent paid to David by the tenant of the public house and the company. After all, the land and campsite was valued in excess of £700,000 and the RHI and FiTs would cover the Hire Purchase repayments.
David approached Arkle who listened carefully to David’s reasoning behind the investment and his proposed plans for the future. Arkle took the time to look beyond the financial accounts and fully understand the business as a whole.
Arkle provided Hire Purchase with a 10% deposit and with the balance repayable over 6 years. In addition Arkle funded the VAT applicable to the purchase price for three months. Unlike the bank Arkle did not ask for a charge on David’s land.