Just completed a case (more of a ‘project’ really) where a professional firm had come under increasing pressure from its bank to radically reduce their overdraft, to the point where a deadline was looming, and it risked the future of the business.
I was engaged by client to solve this one, and my involvement alone gave the bank (who knew of me) enough confidence things were going to happen and it firstly bought the client more time.
The solution to this one had ‘many moving parts’, including:
- A refinance of the firm’s office which was owned by the main partner, along with a change in ownership. A specialist commercial mortgage lender went to the LTV required but proving affordability was a challenge
- Release of funds from a SIPP, with potential for a commercial mortgage also over assets owned by the SIPP
- Persuading the bank to continue facilities but at a lower level (avoiding the need to open up to 40 accounts with a new banker)
- Getting financial information up to scratch (working in tandem with the firm’s accountant)
- Involvement in negotiations with a new partner to inject additional capital
It all had to happen by 31st May – which it did!
I’m gaining a reputation for being able to resolve these situations and both the client and the banker have provided testimonials recognizing the contribution made.
Who will provide the next challenge? Are you being encouraged to refinance or re-bank by your lender? Are you a banker with a borrower who needs help to refinance or move banks?