Helping Cutting-Edge Architectural Firm Secure Multi-Million Pound Office Loan

The firm already had offices in multiple locations but recognised the value of the London office and the potential for growth it would bring. They already possessed a reputation for excellence, but the recent financial performance had been mixed due to disruption related to the COVID-19 pandemic. 

Why was there a problem?

Despite the business’s good reputation in the industry, lenders are often hesitant to make favourable offers if your recent financial performance is lacking. In this case, the firm’s own performance had been unfortunately weaker in recent years due to the slowdown in work in progress caused by the pandemic. 

This slowdown, combined with their ambitious plans for an office in an affluent part of London, meant the firm needed a large amount of money but couldn’t accept a harsh repayment term. They needed to find a lender who would take their reputation and pre-COVID-19 performance into account to offer a better deal. 

Why we were able to help

As finance experts in the professional services sector, we already boast great relationships with mainstream lenders and challenger banks. When a client works with us, they can leverage these relationships to improve their offer. In this accountancy firm’s case, we were able to guide them through the market and narrow down their choice of lender. 

From there, we also helped them redefine their business plan to highlight how the potential office move would greatly increase profitability by attracting new clients – which in turn added to lender confidence and meant the loan could be offered at better value for the firm. 

Ultimately, we negotiated a multi-million-pound deal that was to be repaid over a 5 year period. The agreement included staged drawdowns so that the client could meet milestone repayments without accruing interest on the full balance immediately. 

Finance for architectural firms

Architects depend on works in progress to showcase their financial performance. Some firms can struggle to demonstrate the right value to lenders if they experience any slowdown in their booked work. However, there are specialist lenders that work directly with architects and other professional service businesses. These lenders may be more willing to offer favourable agreements, provided you can find and negotiate with them. 

Make architectural finance easy with Rangewell 

As specialists in the professional services sector, we can help you identify the correct lenders who are more invested in the industry. We’ll also help by assessing your current business, and your renovation or refurbishment project and then we’ll negotiate with the best lender for your needs. Don’t let a slowdown in work in progress affect your finance options – contact us today to get started with a no-obligation consultation.