Unsecured business loan for company expansion

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THE SCENARIO

Although expanding a business can be both exciting and potentially lucrative, it can also represent a significant financial challenge—especially in expensive areas such as London, where the cost of new premises is likely to be significant. An unsecured business loan is therefore an excellent solution for many Enness clients who are looking to grow their company.

I explored this route with a client who was in in the midst of expanding his business. My client’s business already had premises in a central London location, and he had recently purchased another by borrowing £250,000. My client had also maxed out his business overdraft, so he was unable to extend his lending facility any further with his bank—or indeed, any other high street lender.

However, my client needed a further loan in the short term for cash flow purposes. He therefore approached me at Enness to see if I could assist him.

It can be challenging to secure loans for clients who already have high levels of debt. However, based on the current success of his business—he was expanding to meet an increased demand, so there was very little risk involved—my client was confident he would be able meet the repayments.

OUR SOLUTION

I therefore approached a relatively new lending platform with whom we have a fantastic relationship, having arranged finance through them for similar clients on many occasions. Through this lender, I arranged an unsecured business loan of £200,000. In this scenario, this was preferable to a bridge secured against the premise, as a bridging loan would come with legal fees and valuation costs.

This was an ideal solution for my client; we are able to arrange unsecured business loans with speed and minimal hassle, making them a very helpful finance facility.  As an additional bonus, our relationship with this lender means we can secure loans without an arrangement fee.