Industry: Travel & Tourism
Product: Asset Refinance Under CBILS
The Challenge: The family run coach operator has been in operation since 1968. Over the years, 50% of their revenue was occupied by school contracts, while the remainder was made up of excursions and private hire for events. In 2019, the company turned over approximately £150,000 per month. However, with the restrictions in place as a result of Covid-19, these figures plummeted to zero, more or less overnight. It was an extremely worrying and daunting time for the company having been severely impacted by the pandemic.
The Solution: The coach company had Asset Finance agreements with numerous funders prior to lockdown, servicing approximately £50,000 a month on finance. To help with the difficult time and sudden change, the coach providers were able to request a payment holiday, which was granted. However, this was not a long term solution for their recovery and there was no certainty as to when they may have to start repaying it again. After a thorough investigation and Charles & Dean’s pro-active approach, a settlement of all their agreements was arranged and refinanced the sum onto a CBILS asset finance deal.
The Result: Charles & Dean worked closely with the company management to ensure that the most suited funding was offered to them. Facilitating the CBILS loan meant they now have affordable and manageable interest-free payments to make over the next 12 months, relieving the pressure enormously and minimising any possible threats. This vital funding has given the company the opportunity to bounce back when the demand returns, and have already begun to fulfil the school contracts again - something which would not have happened without the CBILS loan.