Success Story: Acting Fast for an Interior Design BusinessPublished on 17th August 2020 2020-08-17T11:00:00+00:00 - Last update on 19th August 2020 2020-08-19T00:08:55+00:00
Getting CBILS funds fast for a £1million business
TL:DR When an interiors company found themselves without work due to the effect COVID-19 had on the hospitality sector, they needed funds and fast. However, when they turned to their bank for help with the government's CBIL Scheme, they found that their bank was overwhelmed and the money would arrive too late. They turned to Rangewell who were able to find the lenders who could move quickly and fast-track the application. It meant the client completed an application and secured funding for £200,000 with a 5-year term at just 8% within a matter of days, and the funds were with them less than two weeks later.
“Back in February, we had a full order book and a thriving business. Then suddenly, all those orders were on hold - or cancelled altogether.”
Covid has caused problems for most business sectors - from loss of earnings to staff not wanting, or being able, to come in, to even closing down businesses altogether.
Some have even found that, despite full order books, the crisis means that customers simply could not use their services.
We recently helped find a lifeline for a business working in the interior design and fit sector.
The company’s business is focussed on the hospitality sector - providing new interiors for bars and restaurants - although they also tackle other high-end commercial premises where a quality appearance is essential.
The business had a turnover in the region of £1million per year generating excellent profits, and a team of skilled people to handle the installation as well as specialist designers.
“Business was thriving because the hospitality sector was thriving, and a stylish interior is vital for the success of a bar or restaurant. People want surroundings that enhance the pleasure of going out for a drink or a meal, and we have developed a reputation for delivering the kind of style that customers want.
Then came Covid, and the hospitality sector was shut down overnight.”
The knock-on effect on the client's business was immediate. Bars and restaurants were not allowed to open, and owners were naturally unwilling to invest in a business that could not bring cash back in. Orders were cancelled overnight - even jobs where a deposit had been paid were put on hold, with no indication of when that hold might be released.
“Income dropped to zero in a matter of weeks, with no prospects of getting back to work. I still had people to pay, overheads and loan repayments to make, but the revenue was no longer coming in to cover them.”
The government's Coronavirus Business Interruption Loan Scheme - or CBILS - looked as though it might provide a lifeline for them.
CBILS was created by the government to provide financial support to smaller businesses across the UK who were losing revenue due to the COVID-19 outbreak. The scheme provides loans of up to £5million with the bonus of nothing to repay for the first 12 months.
It looked like the lifeline that the business needed, but it remained out of reach.
The problem was that when our client approached his bank, he discovered that the team responsible were overwhelmed by demand. The application process designed to support him and his business with funding under CBILS was going to take four weeks at the very least, and he simply did not have time to wait a month before securing the funding he needed to stay in business.
He approached our funding experts instead.
We were able to fast track his application, and our client completed an application for £200,000 with a lender we knew could move quickly.
By making use of the government's guarantee under CBILS, the lender was able to provide the loan with a 5-year repayment term - after the initial 12 month repayment holiday - at just 8%.
The costs were low for an unsecured loan of this size - but what made the offer particularly welcome was the fact that is was secured in matter of days, and funds were available for our client to draw down within two weeks.
“Rangewell found me the cash I needed to keep the business afloat fast. It meant that I had the cash I needed to cover my overheads for the next few months, until we can start working again.
We can keep the business afloat and have have a future to start looking at again, thanks to Rangewell.”
- £200,000 at 8% with 12 months payment holiday and 5 years to repay
- The client had the funding he needed quickly in order to keep his business solvent until work started to come in again - with nothing to pay back for 12 months
Rangewell finds the financial solutions that your business needs
Many businesses have found themselves with problems thanks to Covid - and are still struggling despite the government's schemes.
At Rangewell, we can help you access the funding you need to keep your business afloat - and get you the cash you need fast.
Many of the business owners we talk to told us that the banks were taking too long to process applications. We can call on our network of lenders, which includes virtually every name in the UK market, to get the funds you need quickly.
The Rangewell service is easy to use - and lets you talk to a funding expert to get a solution that is planned around your business needs.
Just call us and one of our Business Funding Experts will be able to discuss your options and work out the most cost-effective ways to provide the funding you want - whatever the challenge your business plans present.
It was a quick solution for our interior designer client. It can be a lifeline for your business too.
Keeping your business afloat with help from Rangewell
- Individual arrangements tailored to your circumstances
- Adverse Credit – no problem
- Repayments geared to your turnover
- Expertise in funding for your sector
- Bounceback and CBILS expertise
Talk to Rangewell – the business finance experts
Share this article
Discover your range of finance. Every type of finance for every type of business.
Our goal is very simple - to help businesses find the right type of finance as quickly, transparently and painlessly as possible.Find Funding