5 years: Half interest-only and half repayment
An existing client came to me as they were looking to raise equity to buy out a minority shareholder in their business and raise capital for further expansion.
It was a very successful Education and Specialist schooling business operating in South London.
The client was a UK borrower who had worked with Enness on previous projects and trusted our expertise.
They had planned on selling the company about a year ago for £11m but pulled out after deciding to proceed with the business for a few more years to try and expand it further.
There was no reliable security as it was not an asset lend, it was a loan backed by the success of my client’s business. Understandably, most lenders would not feel comfortable with these circumstances.
I knew a lender that specialised in funding businesses looking to grow. After liaising with my contact there and discussing my client’s background and requirements, we were able to come to an agreement.
We secured £2.5m for them on an unsecured basis with a lender really keen to work with entrepreneurs and growing businesses.
This allowed them to buy out a 10% shareholder and retain full control with the remaining £1.4m to go towards cashflow and capital expenditure to grow the business.