Category: Case Studies

High-end silverware supplier

Supplier of High End Silverware to UK Retail Sector.

The business was facing administration following a family dispute. This in turn led to the management part of the business wanting to take advantage of an earlier than expected Management Buy-Out (MBO), potentially from the administrator. However, they could not raise sufficient funds to complete the MBO and ensure that there was enough of a buffer within the new prospectus for future trading.

Sourcing a suitable cash solution either through a pre-pack route or via a corporate re-organisation was essential, giving both the owners and the new management team adequate time to manoeuvre in their negotiations.

Opus introduced one of their valued Trade Finance Partnerships who managed to inject enough capital to avoid insolvency by purchasing the company’s existing stock. This in turn would facilitate the MBO, and provide an additional trade finance facility to bolster working capital going forward. The trade finance company of choice were quick to react and offer our client two very bespoke funding facilities.

Post MBO the company is now trading at a high level from which it can build on and win future contracts that will see it grow over the coming years. BFS will be retaining a close relationship with this company and will be available when funding is required again.

 

A family run business whose focus is on breeding lamas for their fine wool.

The Business

The business is a family run affair whose focus is on breeding Lamas for their fine wool. Born out of a growing market for this product, the owners were following a lifelong dream of being financially independent, owning their own business, and living the good life.

The Challenge – Cash Solution to Allow Time for Negotiations

This business, with relatively mid-range turnover, unexpectedly developed an expenses issue. Unfortunately, this hit during their off-season, which meant they didn’t have enough cash flow to cover them. Since the small holding needed working capital to prepare for its busy season, they contacted BFS for assistance.

The Opus Solution

Instantly the team at Opus analysed the Business’ predicament and came up with a solution by recommending a short term loan product via one of its network of Term Loan specialist. What’s more the selected provider implemented this short term loan funding within just 3 days of applying.

The Result

Still, to this day the small holding turns to BFS for all of its short-term and long-term cash needs. The business hasn’t been to a bank for a loan in over a year but instead trusts the BFS experts to locate the right solutions to get them through any financial requirements.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

 

An organic and gluten-free bakery based in London.

The Business

The three owners of this organic gluten-free bakery believed they had spotted a small niche within the artisan bread industry. Having worked together in the past, they made a decision to come together in 2017 and set up a business offering a popular healthy bread option but also the growing demand for a gluten intolerant community.

The Challenge – New Equipment to Double Capacity

Business sales had been steadily increasing and the business had moved to bigger premises, including a small coffee and patisserie shop that now accounted for 30% of their turnover. However, this had put significant strain on their staff and capacity.

To increase the capacity of the business they needed to acquire new equipment for processing dough and additional ovens. This, in turn, would allow the business to double its capacity. The combined cost of these new machines was £40,000.

The directors initially approached their local bank, where they already had a £10,000 overdraft facility and we’re still paying off a £30 000 loan. However, the bank would only offer them a loan of just £20,000 at a significantly higher rate of interest, rather than the previous low rate they had been paying. At this point, they decided to search for alternatives and came across us at BFS.

The Opus Solution

The team at Opus started to consult with the three directors where it quickly became apparent that this could be a Peer to Peer Lending deal. Having a wide network of Peer to Peer lenders on the BFS panel they were paired with an expert who packaged the funding requirement and launched the bid. Within a few weeks of the bid launch, the bakery had acquired the relevant funding and even surpassed the amount of capital required. This enabled them not only to purchase the equipment but develop their IT infrastructure.

The Result

The bakery has continued to enjoy some exponential growth and has managed to reach out to the online community which it didn’t have before. The business has now started to look at creating its own registered “brand” which only serves to enhance the intellectual property value of its business.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

 

A high-end Liverpool based restaurant business.

The Business

A Liverpool based restaurant, offering a predominately vegan and vegetarian menu

The Challenge – Operating with £8k Overspend

The owner of a high-end vegan, vegetarian restaurant assumed he had enough financing in place for his new flagship restaurant. However, having now looked back at some of the interior fit-out costs in the original business plan forecast, it put the new enterprise £8,000 over budget. Although the business had got off to a good start operating with this £8,000 oversight was challenging. One month after opening, the owner approached BFS for advice on a cash advance.

The Opus Solution

The Opus team were quick to recognise that a business of this type enjoys a high volume of credit and debit card transactions and therefore a Merchant Cash Advance facility in exchange for a percentage of future sales could be the solution required.

Having built a network of Merchant Cash Advance experts BFS were quick to pair this business with a suitable provider. Within 14 days, as is typical, the required funding was in place and the restaurant continued to trade without concern.

The Result

The restaurant has proven to be a local success and with the increasing trend in healthy cuisine throughout the city of Liverpool, alternative plans are already afoot to open a takeaway delivery outlet offering this popular nutritious food.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

 

A Midlands based recruitment company.

The Business

A Midlands based recruitment service provider established 5 years ago with 25 staff. The business places candidates throughout the FMCG sector, offering clients permanent and interim recruitment services. This client is just one example of many recruitment companies we have been able to help.

The business had recently purchased and relocated to new premises and was now looking to improve its growing reputation by expanding into other career recruitment sectors.

The Challenge – Cash Solution to Allow Time for Negotiations

Since growing at a fairly sustainable rate, the business had started to reach a cashflow impasse. This, however, is not unusual in the recruitment sector but unfortunately, the drag on outstanding invoices for job creation contracts impacts the businesses working capital. The business was faced with a dilemma, either to remain stagnant or to find a way of increasing the outstanding and very slow debtor book invoices.

The Opus Solution

For Opus the solution to this situation was apparent and the need for an invoice discounting facility was obvious from the initial discussions with the directors of the business. The BFS panel of invoice discounting providers were narrowed down to a company that would have a unique fit for this particular sector and organisational requirement.

The chosen invoice discounting provider would maximise the business’ cash flow by releasing and advancing the funds tied up in unpaid invoices, allowing the business to thrive and prosper.

At BFS we clearly understand that many businesses look to invoice discounting because they wish to grow, and as a result, it’s important that we match the right product or service that allows flexibility when it comes to increasing funding levels.

The Result

The Recruitment company greatly benefited from the increased flow capital into its overall business plan/forecast, and the feedback we have gained from the directors tells us that taking time to listen and understand the basics of what is required has changed the landscape of what was already a good business, into one that is now a great business.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

A businesswoman who owned a small portfolio of commercial properties.

Our client, in this instance, was a businesswoman who owned a small portfolio of commercial properties. Through her company, she borrowed £700,000 from a well-known high street bank to carry out some refurbishment. The property purchased for £1.2 million and was now valued at £2.5 million.

Problems with an existing bank relationship can arise when a customer, such as our client, is asked to repay a large commercial development loan. Only by coming to BFS were they able to find a solution from looking at the whole of the market.

Banks can sometimes have a preference for different types of lending so it can pay to research when dealing with large commercial mortgage loans

As this was a short-term commercial loan, the bank’s corporate banking division wanted the money repaid and directed the client to back to her bank to arrange longer-term finance. However, the private bank would offer only £300,000 on a 5-year term and were asking for a personal cash injection. The client did not have the ability to do this, nor did she have any other cash. Most of her wealth was tied up in a portfolio of properties which she did not wish to liquidate.

The team at Opus met and spoke with the client, and quickly unearthed some other added complications. Although the client’s company had made a profit in the last tax year, some other losses had been made in previous tax years, which consequently led to several banks declining the loan on grounds of affordability.

BFS paired one of their preferred commercial lenders to take up the case where it was soon apparent that the losses were due to a combination of depreciation and amortisation expenses – in other words, non-cash entries.

The chosen commercial mortgage lender then positioned the client with a lender who understood the client’s sector and was also understanding of the mitigating circumstances. A suitable lending deal was packaged, and the client received her loan.

The client has been able to continue her development and has already voiced her appreciation of our skill and ability to think outside of the box by placing her with the right lender. BFS would always hope to tackle this and other more complex cases when put to the test.

Newly established dog kennelling business.

The Business

A start-up business is definitely not for the faint-hearted, but with enough determination, it can be very fulfilling. This is certainly true when it’s your lifetime passion to provide kennelling for dogs. In addition to the usual challenges that need to be overcome as a start-up, there is a raft of DEFRA requirements that must be met. All of this takes up valuable time, dedication and a large cash reserve to ensure that the business survives past the first few months of trading.

The Challenge – Cash Flow Advance until Break Even was Reached

It was soon realised, that in order for the business to flourish the new kennels would need a cash flow injection which would create a safety net until the marketing and advertising had firmly kicked in and the business felt established. The two directors had used all their initial seed capital on getting the business started and now needed a further cash flow advance to tie the business over until they started to break-even.

The Opus Solution

The team at Opus sprang into action by taking time to look at the business from many perspectives and arrived at the conclusion that traditional cash flow finance would remedy the situation for at least the first 12 months of trading. Looking through a few different providers in this market the consultant could match the requirements with a well-known cash flow finance provider and the much-needed capital was put in place very quickly.

The Result

It took the new kennels about 18-months to establish and overcome some major hurdles but has now become a reputable and trusted business. The directors are so pleased with the service offered by BFS that they are already talking to us again about expansion and have managed to acquire an adjacent brownfield for development where they will build more kennelling facilities.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

Bridging Loan Case Study

The Business

A commercial and residential property development company based in Birmingham.

The Challenge

Having agreed to purchase two adjoining commercial properties on the outskirts of Birmingham, our two property developer clients contacted us as they were struggling to secure the finance required to facilitate a commercial mortgage.

The properties in question were very run and required a full internal refurbishment, coupled with the fact both properties had recently become vacant creating a cash flow issue which deterred any potential lender from having confidence in the property’s affordability

The Opus Solution

As both these property developers saw this a very good business opportunity the Opus consultant was convinced that this could be remedied by an alternative funding method by introducing a bridging loan facility until a commercial mortgage could be swapped in its place.

The Opus consultant contacted two very renowned bridging facility lenders on their panel who he thought may have an appetite to consider this particular case, and within two weeks a bridging loan facility was arranged for a 12-month term, which if the clients required extended at any point after 60 days without penalty.

The Result

Within a 6-month period, the clients had renovated both properties to a standard where tenants could occupy and agreed on new lease terms. A commercial mortgage was then applied for and used to repay the bridging facility off in full.

Both clients had almost given up on the idea of acquiring this addition to their growing portfolio but having put faith in BFS consultant and their carefully chosen panel of lenders it proved beyond doubt a solution can be found when dealing with the right people.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

Asset Finance

The Business

A major international haulage business based in the UK delivering goods throughout Europe and the Eastern Block, with 15 large container lorries and depots throughout the EU.

The Challenge – No Trucks to Fulfil Contracts

After running a successful road haulage business for many years, the owner-managers’ personal circumstances meant the current business had started to fail. This dynamic husband and wife duo were now facing the prospect of building a new business.

Despite winning numerous new contracts based upon a large network of contacts, the client was unable to obtain the finance needed to acquire new trucks. Traditional finance routes were not available due to the trading and credit history and a non-existent current balance sheet.

However, the client was confident he could make the business work successfully by replicating his previous business model which had historically generated good turnover and profit. He had the experience, the know-how as well as the contracts required – but no trucks with which to fulfil these orders

The Opus Solution

The Opus team looked at this case from many different angles and eventually made the right decision by introducing the client to the right finance solution. It was very clear to BFS that the solution for this client would be to bring in one of their long-standing Asset Finance Partners. They were able to provide funding for at least 5 new haulage trucks, and were also able to assist with some funding to help with a cash flow gap.

The Result

The client now has a brand-new fleet of trucks working in tandem with multiple new haulage sure contracts and is looking forward to further expanding his fleet.

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.

Secured Pension Funding

The Business

Fabrics Plus Ltd is an independent, high street fabric shop, which had been run for many years by its previous owner. Robin and Sarah Honeywill bought the business as a going concern in June 2018 when they learned that the business was to close due to retirement. Sarah’s passion for craft work and soft furnishings had now turned into a business – a dream come true.

“Owning and running this shop together is a dream come true for us; following a passion has got to be the most rewarding work to do”.

Like any great fabric and haberdashery outlet they offer a huge range of fabrics and accessories, as well as offering sewing classes and sewing machine rental. They employ 7 people who all stayed with the business when it was sold. Together they have grown the company in ways no one thought possible to explore new markets whilst continuing to support the local community.

The Challenge – Investment in Stock

When they purchased the business, they had to borrow £40,000 from a family member to buy the existing stock from the previous owner. This was a debt that they wanted to settle as soon as possible as it was a favour to plug a funding gap at the time of purchase and was never intended to be a long-term loan. An asset finance introducer referred them to BFS as they had experienced some road blocks when applying to borrow from the bank.

The Opus Solution

An Alternative Approach to Business Funding

Opus’ Opus Business Pensions loves a challenge and we love to help businesses of all shapes and sizes get the funding they need to achieve their business goals. Meeting with Sarah and Robin, to hear their situation enabled us to advise them of all the funding options open to them.

After much discussion on the pros and cons of various types of funding that would suit them, it became apparent very quickly that by using their pensions, they would not only be able to pay back their family, but they would be able to increase their pension funds at the same time.

Secured Pension Funding

Business Fund Shop’s secured pension funding enables people to access their own pension fund before they retire. In other words, access dormant funds that are yours. This little-known form of funding was perfect in this situation as using traditional forms of business funding had not worked out for them.

The Result – A Word from Fabrics Plus Ltd

The application was successful and Sarah and Robin received the full amount of money they had applied for.

“We couldn’t be happier with the way things have turned out, we are loving running our new business and can do so knowing our debts to family are paid – we are standing on our own two feet. Who would have known that the source of funding was right under our noses, in our own pensions? Of course, we realise the risk involved, but we are sure enough of our business plan, that we know the money will be paid back into our pensions by the time we retire. We also know for the future that if we ever need to borrow more, we can dip into the fund again. We would recommend Opus Business Pensions to anyone – so refreshing to have options explained so well, without feeling that you are being sold to.”

Sarah Honeywill, Fabrics Plus Ltd

We Can Help You

If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.