Business Funding: Unsecured Business Loan
Location – Southwest
Finance Amount: £100,000
Background
A film production based in the Southwest of the UK was introduced to Pinnacle as they required funding to support cash flow and repay debts which they had suffered over previous years. They had mounted up supplier and rent arrears, partly down to Covid coupled with a slight downturn in turnover.
Solution
When the client approached the broker at Pinnacle, he felt that it was a long shot that someone was going to give him a loan for his business. He was acutely aware the numbers weren’t looking great however believed he has solid foundations to build and bounce back on. We spoke through how and why he had come into this position and the steps he had taken already before speaking to his finance broker at Pinnacle.
He advised the bank and unfortunately declined his business loan application, and this meant that without a loan or some form of funding, cash-flow was going to be very tight over the next 12 months.
The broker at Pinnacle asked if he had any projections or a cash flow forecast, he could share which fortunately he had already completed. This was fantastic news as he knew his outgoings each month and more importantly the amount he needed as a business loan. The broker reviewed this for the client and built a loan application based on his future cash flow projections for the business.
The loan was based of his projections for the business and historic performance before the slight downturn in business. This meant the unsecured loan was spread over 5 years with the option to repay the loan early, with no early repayment fees. This gave the client the flexibility of funding through the unsecured loan whilst having the benefit of the funding in the short term.
