Growth Guarantee Scheme - Refurb Loan for Accountancy Firm Office

Office refurbishment can be a fantastic way of expanding your business by better utilising your space, attracting talented prospective employees and improving your brand’s image.

Major refurbishment, however, can be an expensive ordeal, and lenders might not always be inclined to lend to businesses if they deem plans for refurbishment to be non-essential.

Asset finance is a fantastic method of sourcing capital for office refurbishments and is an ideal alternative to using your business’s revenue, which can limit plans for expansion and cash flow, harming business operations.

Facing some financial difficulty and challenges in acquiring a suitable asset finance loan offer, our client contacted Clifton Private Finance for help.

The Scenario

Looking to refurbish their office space in Scotland, our client wanted to create a more comfortable space for his employees and potential customers, whilst also upgrading their computer technology for smoother overall operation.

The business owner wanted to explore several offers but had difficulty securing offers from lenders, so they contacted Clifton Private Finance.

Our broker discovered a middling balance sheet with limited cash flow, which lenders previously had difficulty approving.

The Process:

To meet the client’s desires, Clifton Private Finance submitted our client’s asset finance loan request to a variety of lenders. Identifying the potential financial issues in loan repayment thanks to the business’s limited cash flow, a reputable lender offered a Growth Guarantee Scheme loan (GGS) to assist in improving lender and client comfort.

A GGS loan is a government-funded scheme which provides an additional layer of client and lender comfort. If a client cannot make repayments of a loan, the government can cover costs in the meantime. A GGS loan is a crucial tool for small businesses, providing emergency funding to businesses without the steadiest cash flow.

Due to being a government-backed loan, brokers cannot directly suggest a GGS loan to a client or lender, and they must operate within their regulated advisory position. Only accredited lenders or government agents can offer a GGS loan.

If our client hadn’t reached out to Clifton Private Finance, he would’ve faced the following problems:

• Due to some concerns about cash flow, securing a loan with a lender would’ve been challenging – with many of them outright refusing to lend the amount.
• The client may have received an offer, but at a much higher interest rate than we found for them.
• The timeframe for the loan may have been considerably longer, leading to refurbishment delays which will result in delays to office refurbishment.

After reaching out to several lenders, we received an offer for a GGS loan for the full requested amount, which also included a personal guarantee. This allowed the lender to offer a lower rate to the client.

The Result

Thanks to the responsiveness of our broker, and the well-formed documentation from both lender and client, acquiring the £50K loan was a smooth and simple process for everyone involved.

The offer of a GGS loan for our client gave them peace of mind thanks to some financial concerns, and they have enough capital to renovate their office space to create a welcoming environment for both customers and aspiring accountants.

“Being able to support an independent business through a GGS loan was a highly rewarding experience. Having visited Clifton Private Finance before, it was a privilege to help repeat customers expand their business and secure the very best possible offer for them.”

“Securing the best possible offer for our client’s independent business was a rewarding, smooth and simple process – made possible by Clifton Private Finance’s strong relationship with lenders. Despite some concerns and a short timeframe, securing a GGS loan was a superb outcome for the client’s business.” – Sophie Rowe, Business Finance Executive

If you’re a business owner seeking support with asset finance, our team of highly experienced brokers are ready to assist you throughout the entire process, leaving no stone unturned to provide the best customer experience imaginable.