Location: Southern England
Funded: £370,000
Industry: Transport / Haulage
Product: Asset Refinance Under CBILS
The Challenge: When the pandemic hit earlier in the year, a haulage company in the South of the UK, was significantly impacted and immediately saw 60% of their turnover paused or cancelled. With this considerable and immediate drop in revenue, the company needed to act quickly to protect the businesses future. With financial uncertainty heightened, the company contacted their high street bank in the hope to secure a CBILS loan. Unfortunately they were not successful and therefore contacted Charles & Dean to seek advice and support around alternative CBILS funding options.
The Solution: After a thorough investigation we worked closely with the haulage company to identify a number of suitable solutions. With cashflow presenting the main roadblock through the pandemic, it was decided that it would be more appropriate to arrange a CBILS refinancing structure rather than a traditional business loan. This required the settlement of a select number of both Hire Purchase and Finance Lease Agreements and refinancing the consolidated sum over a new term under the CBIL Scheme.
The Result: The immediate result of refinancing all of the existing HP debt was that the business benefited from a reduction in their monthly finance commitments by over 60%. With the haulage business trading at 40% of its usual capacity, this CBILS product meant that the business was able to continue trading with relative expenditure vs revenue without the need to take on any additional debt.
As a result, since arranging the refinancing the company’s accounts now show a substantial increase in turnover, month on month, and also show an £80,000 increase in profit compared to the same time last year. Furthermore, staff have returned to work, business levels have increased dramatically and the haulage company has had to purchase 4 new vehicles to join the fleet.
Testimonial: “Charles & Dean guided us through the CBILS minefield and informed us of different products and their suitability. With this detailed insight we were able to take the best route to market, suited to our business needs. It has helped us bounce back from Q1 with a strong Q2 and Q3. We have now used CBILS to make more purchases using Charles & Dean as our broker.” - Company Director