Genie Lending was approached by a food wholesaler based in the North of England, keen to achieve a working capital injection as traditional sources of finance were not available due to personal adverse credit including county court judgements and a previous failed business in administration, a process which had created this phoenix business in 2012.
How we Helped with Adverse Credit
No High Street Bank would assist but working in close conjunction with the client’s accountant, our Business Finance Manager was able to secure a commercial second charge mortgage secured on the company’s warehouse raising £80,000 by way of a 15 year term loan. This additional working capital helped the client improve margins and source more product far more efficiently.
The extra funds has strengthened the buyer’s negotiating position with their suppliers who remained anxious as a consequence of the previous business failure which constrained business growth. Breeding that new confidence with suppliers has allowed the wholesaler to take advantage of far higher levels of trade in the Christmas period and retain higher levels of profit and cash than originally forecast out of the higher business volumes.