Traditional values : Modern solutions

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Legal firm - Term loan

Sector: Legal | Value: £63,000
Equipment type: N/A | Term: 5 years

The client wished to reduce its reliance on short term debt, used to finance tax payments, and eliminate its bank overdraft.

Problem:

The client was reliant on short term debt to finance VAT & other tax payments and had a bank overdraft. The client was keen to eliminate both short term borrowing facilities.

Approach:

Following an introduction from the client's bank, we met with the client to understand its business and its challenges. We worked closely with the client's bank to identify both working capital and a long term finance solutions.

Solution:

A 2 year working capital facility was arranged to finance future VAT and other tax payments. This facility can be repaid early with no penalty. In addition, the client's bank agreed to convert the existing overdraft into a 5 year loan.