Learn how our finance team helped this small business grow by restructuring their business finance
Our finance specialist Wade Henry was approached to review a building company’s financial structure. Both directors were uncomfortable that they had their personal property and spouses’ guarantees tied up with their business.
Wade’s challenge was to untie the personal property from the financial security and find alternative collateral for loans to enable the business to grow.
Experience with similar professional services businesses, including other building companies, gave Wade a good understanding of the industry that helped when researching the business. Wade looked at the businesses projected cash flow, the forward order book and the work the building company had due to complete. A long-term approach was used to assess upcoming jobs.
To help the new client Wade needed to:
Wade put a financial value on the client’s future work and used the projected cash flow as security against the loans. This enabled the client to refinance and recapitalise. It also simplified the financial security structure by removing the directors’ and their families’ personal property as collateral.
The client continues to benefit from the assistance and accessibility of their finance broker through: