Croydon-based accountancy firm MDH assisted a recruitment agency client to refinance existing lending facilities, extend lending to provide surplus cash, reduce interest rate costs and use a product where personal security was not required.
After a tough previous year, the company was struggling for cashflow and discussed plans with their accountant, Michael Hemme, Founder and Managing Director at MDH. He introduced his lending partner, Capitalise.
The business’ current facilities were incurring quite an expensive rate and the founder also needed to release further cash. The funding specialists understood the requirements and approached the market.
They recommended a lender who could provide a facility under the Government Guarantee Scheme, where personal guarantees would not be required.
Offers were secured and the existing outstanding loan was refinanced, plus they raised a further £180,000 of new money, all on lower rates.
This provided steady cash for the business to resume growth, whilst protecting cashflow with only one monthly repayment.
