Bridging Finance Solutions has completed one of its most unusual deals to date, providing a short term loan to a garage forecourt owner looking to acquire a number of imported motorbikes as part of a business expansion plan.
The private client was keen to develop his business and offer more motorbikes for sale on the forecourt but needed a cash injection in order to facilitate this. BFS was able to provide £100,000 using the business owners property as a guarantee, securing funds within 2 weeks. The business had only 12 months trading history and was unable to secure a stocking facility or overdraft with their own bank until 2 years accounts were available
With a plan to pay the loan back within six months once the motorbikes where sold, the loan effectively remained in place, providing a revolving credit facility which enabled the business to continue to grow, increasing sales and profitability.
Bridging is an incredibly flexible finance product and this recent deal reflects this. This very savvy client needed cash quickly in order to move his business forward and understood that a bridge could essentially unlock his issues and provide him with the funds needed to make the necessary changes.
The client continued to use the bridge for 8 months, purchasing and re-selling stock, building his business up until he no longer needed the bridge and had a financially sound and stable infrastructure in place.
Many high street lenders simply don’t have the appetite to lend to smaller businesses or provide overdrafts which would ultimately provide an essential cash injection that will enable that business to grow. We see this as a niche area for us and more and more business owners are recognising this gap that bridging finance can fill.