Determined to be a loan provider that will sensibly consider all types of businesses means that we never know what the next assignment will bring. A prime example of this was when we were approached by a charity operating within a limited company for a business loan.
Charity needed business loan to bridge delayed funding from council
The charity provided opportunities for children, young people and adults with learning disabilities. It had been operating for 50 years receiving funding from donations and the local council.
Unfortunately due to changes in the local council, there had been funding delays in the instalments promised to the charity. The charity had submitted extra funding applications to organisations such as Comic Relief and the National Lottery but these applications take time. To assist with cashflow problems the charity decided to sell one of its investment properties which was at the time being used as an education site.
The sale of the property had been delayed due to a planning requirement from the local council for change of use back to residential and exchange of contracts was not possible until this had been done. The date given for completion was over a month away.
There were ongoing operational costs, specifically wages, which needed to be settled in short order - the charity was becoming desperate for a short term cash injection.
Quick business loan allowed continued trading whilst property was sold
We reviewed the charities financial position and their request for a quick business loan. The basis for the loan, which was essentially bridging finance, was sound. During our review we noticed that the investment property had not been registered correctly within the limited company and had remained in an unincorporated charity which the charity had previously operated under. A fact missed by the surveyors overseeing the sale of the property. Within the team at Cashsolv we have a treasurer of a local unincorporated charity which had recently overseen the transfer of the charity into a charitable incorporated organisation and so we were able to apply our internal knowledge on the subject matter.
Using our wider network of advisers we assisted the charity to amend the position of the property at the Land Registry. This also later aided the charity in ensuring that the sale of the property was not delayed by this oversight.
Once the property position was corrected the loan was advanced and the charity was able to continue trading for a further month. The loan was successfully repaid as part of the property sale, received directly from the solicitors.
Cashsolv provide flexible business loans to any situation
At Cashsolv our business loans are used for all types of businesses and almost every situation is unique. In this instance we were not put off by something out of the ordinary and we were able to use our existing knowledge, flexibility and network of advisors to ensure that this charity could continue offering its services to the local community.
Although in this instance a business loan was required, we do advise on different types of business distress and offer financial solutions such as HMRC time to pay agreement, Company Voluntary Arrangement (CVA), and Commercial Debt Recovery. In all these instances, it is critical that you act fast – the earlier you contact us, the more we will be able to offer and help you with.