Securing finance without trading accounts can be a chicken-and-egg situation. You need finance to start trading, but you can’t get finance without accounts proving the business has been successfully trading.
However, all is not lost. With the help of a professional, it’s possible to convince a lender that your business is credit-worthy.
For example, The King’s Head pub in Syresham was barely trading with no trading accounts, yet the owners needed finance. This situation would present a challenging transaction for any bank, with many potential pitfalls in the finance process. However, fortunately for the owners, we had already worked with them on a previous funding application for their first pub.
We could evidence their experience with their other pubs (and successful catering business) and obtained very competitive terms from a high street bank. Despite difficulties with planning and a last-minute hitch with the previous tenant, we completed the deal in time for the pub to open for a critical trading period.
In another instance, we were able to secure funding for The Character Mirror Company, which was looking to acquire retail premises. The owner only had a minimal deposit and limited early trading figures.
We supported the application with detailed accountant projections and demonstrated the potential of the business and the quality of the applicant. As a result, we secured a lender, and The Character Mirror Company was able to buy and open a retail shop.
When the circumstances are far from straightforward, it pays to have a broker on your side. If you need an expert hand, please get in touch.
