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£50,000 ‘Jigsaw’ Finance: Dealing with the challenge of rapid growth

Published on 21st August 2019 - Last update on 17th March 2020

The design and media sector is thriving as the internet changes the rules and opens up new possibilities. Many new businesses are growing rapidly as a result but, as with all small businesses, banks may be reluctant to lend - especially when a business has only been trading for a short time. 

Many small businesses with full order books and exciting prospects find their plans frustrated by a lack of funds. This means that, as an accountant dealing with clients in the design and media sectors, you may frequently be approached for funding solutions. At Rangewell we can provide innovative answers that can help you answer your clients' needs - even when conventional solutions cannot help.

The challenge

We were recently approached by an accountant based in East London’s Shoreditch. Thanks to the location of his practice, and his enthusiasm for new and innovative businesses, he had built a list of clients working in the creative and media sectors. 

They included a small graphics studio which had outgrown its modest rented studio space, but which was finding the cost of acquiring new premises daunting. As the accountant explained to his client, creative people had flocked to this part of London for the low-cost floorspace and proximity to the City. But the popularity of the area, with the arrival of Google and other major names, had forced rents up. 

The accountant discussed the problem with his clients. Moving out of the area would disrupt the existing business. The business needed to grow to capitalise on their growing reputation, but without extra usable desk space, the studio could not take on the extra designers.

The accountant saw that additional funding would be essential to provide the necessary deposit on a bigger working area, bring in equipment for additional designers and to provide working finance during the planned growth. He approached Rangewell to provide answers.

Are you looking to help your clients find the funding they need to grow their businesses? Do you want to add an income stream to your accountancy practice? Become a partner today or find out more

How we helped

Business lenders can be reluctant to lend to any business which has  cannot demonstrate a long trading record. Without several years' of audited accounts, even a successful business may be seen as a start-up. 

At Rangewell, however, we know that lenders do exist to provide finance for scale-ups and who cater for businesses who do not have a long trading history - but that costs may be higher. But we also know that by getting the most appropriate type of funding for each business purpose, costs may be reduced. 

We looked at the figures with the accountant and the business owner and, together, we broke the funding requirement down into several different needs:

  • To acquire new premises
  • Bring in new equipment and assets
  • Provide working capital

We then looked at the most appropriate type of funding for each need.

Funding for studio premises

Whether the client settled on a serviced office or a long-term lease on bare space, an upfront payment would be required. An unsecured loan might be the best way to provide it.

Funding for studio equipment 

Top of the range IT, as well as conventional office equipment,was required. Asset Finance - incuding Hire Purchase and Leasing - can help make virtually any type of equipment affordable by using the asset as the security for the finance.

Working Capital 

Working Capital Finance can help a business stay afloat and pay staff while cashflow is slow. It is designed to be repaid in the short- to medium-term, as soon as profits start to become available. 

Tax Loans - helping deal with demands

A  large quarterly VAT or annual tax demand can cause problems with cash flow for any business, but especially smaller ones. A Tax Loan could help smooth the flow of cash, and release funds for growth.

'Jigsaw' Funding as a solution

We then devised a ‘jigsaw’ funding plan, made up of several types of finance. 

Because we are completely independent, we were able to approach a number of providers - a challenger bank for the premises funding, an established Asset Funding specialist for the equipment costs and an online lender for the short-term working loan. We were able to assemble a financial package which would offer the most cost-effective funding for each need - keeping costs down overall. 

The accountant had the satisfaction of having helped his client realise his growth plans, and was also able to share in commission from the loan providers.

We help accountants find answers to all kinds of funding needs for their clients. Loans, Asset Finance, Jigsaw Finance, Commercial Mortgages or any other kind of finance - we find the most appropriate solutions while our network of contacts and our unique online tool let us find the most cost-effective rates.

Because we work with all types of business funding from lenders across the entire UK market, we can find solutions for any funding need. Our service is independent, fast and absolutely free.

Simply call us at Rangewell on 020 3637 4150 - or email [email protected] Our service is free.

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Richard Mitchell

Richard Mitchell

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