Finance Need: An established jewellery business was looking to fit out their new high-end store to include LED lighting, flooring, new wall panelling and decoration, at a cost of £150,000.
The Situation: The business was family-owned and had been trading for a significant number of years. The financials indicated turnover and profit were decreasing and there was a reliance on the bank overdraft to support the day to day running. The business owners were backed by personal worth and were prepared to support the proposal with a personal guarantee.
What Arkle Did: From reading the collated information and discussing with the Broker, we recognised that the new development would turn around the business and while cashflow was temporarily constrained due to the move, the business plan demonstrated a return to healthy profits within the year.
The Finance Solution: Our experienced Underwriters were able to see the benefits this refurbishment would bring to the business and confirm both affordability and serviceability to our satisfaction. With prudent support of a personal guarantee from the business owner, they approved the proposal on a 1+59 month lease. The documentation was subsequently completed and paid out within the timeframe requested by the Customer.
Arkle Comment: Because of the Broker’s direct access to our experienced Credit Team, we were able to make an informed decision based on the potential rather than a temporary downturn in business fortunes. In doing this, we can support our Customers in the best way, while remaining a responsible lender.