Check eligibility
A husband-and-wife duo founded a residential construction business in the Scottish Highlands. Despite their success, they struggled to secure long-term financing construction finance to support their growth goals, leading them to rely on short-term loans.
Client Background
Scottish Highlands Construction Firm Faces Financing Challenges
A husband and wife duo established a residential construction company in the Scottish Highlands in 2019. Despite their growing business, they faced ongoing disappointment from mainstream lenders and felt caught in a frustrating cycle of short-term loans. After years of being turned down, they almost gave up hope of securing the right funding for growth of their construction business.
The Challenge
Struggles with Securing Long-Term Business Financing as Tenants
The couple wanted to scale their operations and manage cash flow better but struggled to access long-term financing. Being offered only short-term loans with their previous broker, they faced higher monthly repayments, which drained their resources.
As tenants rather than property owners, they believed that securing long-term loans was impossible, especially given the limitations of mainstream lenders. Many businesses in their situation often don't realise that specialist business finance brokers can access lenders who offer better terms and are more flexible, even for tenants.
The Solution
How Millbrook Business Finance Assisted
Will Evans, a business finance specialist for Millbrook Business Finance, introduced the company to the benefits of unsecured business loans for construction businesses to meet their finance goals.
They secured an initial £50,000 loan over two years to replace their previous high-cost, short-term agreements. This strategic move lowered their monthly repayments by £3,000 per month too!
Additionally, they have been successful in securing a £15,000 loan for 12 months as working capital to manage seasonal winter fluctuations.
Benefits of Unsecured Business Loans
- No Collateral Required: Tenants or businesses without significant assets can still qualify.
- Lower Monthly Repayments: The structured loan reduced monthly pressure, improving cash flow.
- Flexible Terms: Loan terms were customised, extending repayments and providing much-needed breathing room.
- Cash Flow Management: The £15,000 injection of working capital supported the company during seasonal peaks, ensuring smooth operations.
The Results
£3,000 Monthly Savings Fuel Business Growth and Stability
By securing the construction loans, the company saw immediate relief with £3,000 saved monthly on repayments. This gave the business more flexibility to reinvest funds in their growth strategy, including expanding their workforce and taking on more contracts. The shift away from short-term loans to structured finance enabled them to stabilise their financial base and plan with confidence.
Summary
This success story illustrates how specialist business finance, when tailored to a company's specific needs, can transform a business’s growth trajectory. Through expert business finance guidance from Millbrook and the ability to access better financial options, the couple moved from a cycle of short-term debt to long-term growth. This case demonstrates that even tenant businesses can secure valuable financing solutions when working with a knowledgeable finance partner like Millbrook Business Finance.
Get in touch to discuss your business financing needs with one of our experts. Alternatively, apply for business finance with Millbrook now for a business loan that can support your business.
