A retail / service business had been running for around 5 years from rented light industrial premises and had achieved profitable growth and positive cashflow.
An opportunity came up where a competitor was closing down and selling their freehold premises, which were also in a more attractive location.
Working with the Managing Director, we prepared business forecasts for the business trading from the new location and allowed for some increase in trade from acquiring some of the closing company’s customer base. We then prepared 5 year cash forecasts and a full business plan which was submitted to Barclays Bank. This allowed for the purchase of the site, costs of transferring the business, and an expansion of working capital to service the expected increase in turnover.
Barclays approved the lending and the new site was successfully acquired.
The company thrived in its new location, business increased in line with expectations and the cashflow performed within forecast.
Do not believe those who say banks are not lending money, they will lend to companies with credible business plans provided that there is sufficient security. The are also other lending sources that may lend for projects that do not meet the banks’ criteria.