SME business funding with “challenging” credit – funding a mezzanine floor

We all love a challenge and this proposition of funding a mezzanine floor for a very challenging credit certainly ticked that box!
The client – an independent education provider – found us through an internet search looking for funders who offered funding on fit-out projects. Having been disappointed by a previous broker who had promised results but failed to deliver.

The challenges 

In fairness to that broker this deal was far from ordinary – and certainly didn’t tick the boxes of many of the mainstream lenders. SME business funding with “challenging” credit. Those finance companies faced the following challenges:

• The equipment to be financed is a mezzanine floor costing in excess of £200,000 – (Many lenders dislike funding mezzanine floors).
• The business is a “not for profits” enterprise, so accounts rather differently from “normal” businesses.
• The sole director is a non-homeowner, having sold their house in order to invest in the business.
• The business had a major setback several years previously, which lost them a significant sum of money.

On the other hand, there were several plus points which gave confidence that the business is on a sound footing. Also with the potential it can meet its future commitments, including the borrowing required for this fit-out project.

Ironically perhaps, the historic setback which had frightened several finance companies turned out to be a key strength in the business. Details were revealed in a meeting between Fit Out Finance, the customer and a specialist lender introduced by us. The customer then provided evidence of the preventative actions and future-proofing which had followed the incident, leading to an altogether leaner and more professional business operation.

Additionally, the fit-out which required funding is by no means a vanity project.  It is a functional refurbishment of warehouse-style premises into a minimalist teaching/creative environment. There is a clear end-goal to double their student capacity – again, a target which they have demonstrated is totally achievable.

Having succeeded in the big-ask of finding leasing for a mezzanine floor, Fit Out Finance look forward to funding other elements of the fit-out, including air conditioning, partitioning a bicycle rack.

Get in touch today!

Every business has a story – and sometimes being able to present that story – with solid supporting information is the difference between getting funding or being declined.

Are you a business that doesn’t tick the minimum criteria for SME business funding? With 30 + years’ worth of hands-on experience and the support of many independent lenders, Fit Out Finance take great pride in being able to place deals which don’t tick the boxes.