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When an opportunity for expansion came up, a local nursery school company owner needed to secure business acquisition financing, quickly. With the help of Millbrook Business Finance, the client successfully obtained funding for his nursery school expansion plans, on time and with competitive terms.
Client background
Meet Imran, the Managing Director of a regional nursery and early learning company. Since its inception in 2008, the business has flourished, expanding to encompass 31 nurseries across the Midlands and Home Counties. Imran's commitment to providing high-quality childcare services has positioned his business as a regional leader.
The challenge: Funding an acquisition opportunity
Imran's ambitions for growth led him to an exciting opportunity—the acquisition of a new nursery school. To turn this vision into reality, he needed substantial funding to purchase and refurbish the new facility to meet the high standards set by his existing establishments. Imran sought financing with flexible criteria and agreeable interest rates to facilitate this strategic expansion.
The solution: Business acquisition financing to fuel expansion
After a thorough consultation to understand Imran's unique needs, Guy McDonald, Millbrook's seasoned business finance specialist, found an ideal financial solution. Guy arranged a £250k secured business loan over 5 years. By leveraging the value of one of Imran's properties as security and the use of an equitable charge, the lender could facilitate a swift arrangement — a key advantage in meeting Imran's time-sensitive acquisition needs.
Key elements of the funding for a new nursery school:
- Secured Business Loan: Using Imran's property as collateral provided the necessary security for the lender, enabling a lower-cost arrangement.
- Equitable Charge: This streamlined the process, allowing for a rapid turnaround and quick access to funds.
- Extended Loan Term: Through Millbrook's robust lender relationships, Guy negotiated a preferred 5-year term, aligning with Imran's desire for lower payments and enhanced flexibility.
- No Early Resettlement Fees: The absence of fees provided additional flexibility, allowing Imran to explore early repayments without financial penalties.
Benefits of business loans for acquisition financing
- Enhanced Borrowing Capacity: Utilising a secured business loan allowed Imran to borrow a larger amount, enabling him to fund the ambitious plans for the new nursery school.
- Flexibility in Repayment: The negotiated 5-year term with no early resettlement fees offered Imran the flexibility to manage repayments in a way that suited the cash flow of his business.
- Speedy Access to Funds: The equitable charge expedited the process, ensuring that Imran had quick access to the £250k financing needed for the acquisition and refurbishment.
- Strengthened Future Financing: Imran's positive experience with Millbrook positioned Guy as a trusted broker for future financing needs, fostering a long-term partnership.
The results
With this business acquisition financing secured, Imran's nursery expansion dream became a reality. The acquired nursery school is now open and actively serving the local community with quality childcare services. The successful acquisition not only added a new chapter to Imran's business but also laid the foundation for future strategic projects, including branching out into care homes.
The impact
The impact of this strategic business acquisition financing extends beyond the immediate acquisition. Imran's ability to secure the funds he needed has propelled his business into a new phase of growth. Moreover, the strengthened relationship with Millbrook and Guy McDonald has positioned Imran to confidently pursue and secure future financing for upcoming expansion projects.
Summary
In the dynamic world of nursery schools and early learning, Imran's story stands as an example of the transformative power of strategic business finance. Through a tailored and collaborative approach, Millbrook Business Finance not only met Imran's immediate needs but also established a foundation for ongoing success.
Imran's journey showcases the potential for growth and expansion when visionary business owners partner with trusted financial experts to navigate the complexities of business acquisition financing. Through this, he has secured his business' future success and the growth of quality childcare services in the communities he serves.
Get in touch to discuss your business financing needs with one of our experts. Alternatively, apply for business finance with Millbrook now for a tailored financing solution that can help you achieve your acquisition and expansion goals.
