IT Consultancy London Case Study

We were approached by a technology company that provided services to a number of SME companies. The directors have been looking for the funding that they needed to grow the business and had been rejected by the bank, at least initially. After some pressure the bank agreed to provide a £10,000 overdraft which was supported by personal guarantee. This was simply not sufficient to meet growth requirements.

Struggling to make sense of all of the various options available to growing companies, the directors approached Company Funding Options for advice.

We could see straight away that this was not an easy situation to find funding for. This is because the clients paid monthly on direct debits under a form of contract. So it was impossible to fund this through invoice finance or factoring.

After learning more about the company’s services and growth plans we helped prepare an application to an online peer to peer lender. Although the company had some cashflow pressures especially with HMRC, it has very strong growth prospects. It had sales of £1.3 million in 2015-16 and was expecting sales of £1.8 million in 2016-17 financial year.

Why did the directors get CFO to help? They decided to engage our services to find appropriate funding so they didn’t have to contact or call dozens and dozens of potential lenders. As experts in this filed we knew which type of lender would be appropriate – we made a match!

Based on the last full set of accounts and a projection for the current year the company was able to obtain a loan of £156,000 from a platform P2P lender. This loan is repayable over 3 years, the loan is not secured against the company (has no security) but personal guarantees were required from the directors.

Company Funding Options has also been engaged to source further working capital for another company in the group and we are currently working on an equity based injection of working capital for this company.

Knowing which type of funding first and then which FUNDER to fund your business is a time consuming and tricky business. Why not use CFO as your expert brokers instead! We can save you TIME and riase funding for your business.