This large UK bus refurbishment business needed funding to purchase 26 buses to be refurbished and renewed in order to be used for a new contract. They came to Moorgate Finance for a tailored funding solution.
The Challenge
This client approached us with a funding requirement of £200,000 to acquire and refurbish a fleet of buses in order to meet the demands of a new contract offer from TFL. The deal came with some challenges- notably they were at full exposure with their main bank who were then unable to provide further support. They had already explored other options which only proved unfavourable short-terms and higher rates. After carefully reviewing our panel of lenders, we were able to secure a bespoke funding solution at a competitive rate that aligned with their financial goals and allowed them to move forward with their growth plans.
The Solution
We successfully delivered this deal by taking a strategic, multi-pronged approach- focusing on how we could unlock liquidity within the business. After a review of their current assets, we identified opportunities to release capital, including a refinance of an unencumbered crane and leveraging the equity held in other machinery and plant assets. This allowed Moorgate Finance to raise £230,000.
In addition to the refinance, we facilitated an unsecured loan of £100,000 to provide the client with more financial flexibility. This resulted in Moorgate being able to facilitate £130,000 over their initial requirement, allowing them to make further purchases.
Additionally, we were able to secure the funding at a rate 4% lower than what was offered by other lenders. This not only enabled the business to fulfil their original contract, but it also gave them the financial headroom to invest in additional equipment and explore further growth opportunities. The successful outcome positioned them strongly for future expansion and opened the door to larger partnerships with operators such as Stagecoach.
The Highlights
✅ £330,000 funded for 26 buses to refurbish for a contract with TFL
✅ We delivered by taking a multi-pronged approach including refinance of current assets and an additional £100,000 business loan
✅ We were able to facilitate £130,000 over their original requirement, allowing them to make further purchases and take on a larger partnership with Stagecoach
Give us a call on 01908 92 62 62 or head to www.moorgatefinance.com/apply-now to start the conversation.