Aesthetic Business Commercial Finance Client

Background

A longstanding asset finance customer to TBP approached us to support the purchase of a commercial property to open a new aesthetic business in the centre of Durham. They needed finance for the transition from renting out a chair in an existing practice, to purchasing their own property. Our customer had a clear vision to create a unique, high-end business location, that felt exclusive and special to all their customers. This was backed by a large social media following across a number of platforms, and a loyal customer base who would follow them over to a new site.

Challenges

This was essentially a new business venture, which meant many high street banks were reluctant to support the purchase of the property. As a results, many offered a maximum loan to value level of 50%. Funders also requested a full business plan and projections for the business.

There were also strong time constraints, as the target site in Durham had a tight timescale to complete. This meant we had to ensure the transactions were kept to tight timescales and moving forward at all times.

Solutions

Firstly, we worked closely with the customer to create a strong business plan which covered all areas of their expertise and differentials to the rest of the market. We also supported the review of realistic and achievable projections, to show what an opportunity the new venture was for the customer.

We then managed to achieve a 70% loan to value credit backed offer and the transaction was completed within the tight timescale.

Since the purchase, the client has completely renovated the site and exceeded profitability expectations since their official opening.