Medical Equipment Supplier requiring a Business Loan
for Stock.
The Brief
Established in 2005, this Kent-based business supplies medical equipment, consumables and training to hospitals, dentists and doctors’ surgeries around Europe. Due to narrow profit margins, the customer was never able to build up the desired working capital to bulk buy stock and negotiate meaningful discounts with their suppliers. The customer was looking for a £400,000 business loan.
What we were tasked to do
To source an unsecured business loan over a five-year term and to keep monthly repayments manageable. The customer also wanted the flexibility to settle the loan at any point without having to pay any future interest or early settlement fees, as they were not entirely sure how long they would need the loan for.
Challenges to Origin
Given the low profit margins of the business, the customer has often needed to juggle cash flow whilst waiting for their customers to pay invoices. Therefore, the credit rating of the business was average. On the surface, the customer didn’t demonstrate a strong ability to repay based on their current bank statements. It was important for Origin to convey to the lenders the significant discounts the customer had negotiated by bulk purchasing.
Outcome
Origin paired the customer with two lenders, one funded £250,000, the other £150,000, both over five years. Neither lender was prepared to lend the entire £400,000 as this fell outside of their risk appetite. But the discounts the customer negotiated with their suppliers far outweighed the interest on their loans.
