Background
The Full-Worx is a complete commercial and domestic property solution company. It provides commercial and domestic property maintenance and refurbishment services, kitchens and bathrooms, extensions and conservatories, roofing, interior and exterior decorating, plastering and tiling, plumbing and heating, electrical re-wiring and bespoke carpentry.
Rob Champion had been operating the business for seven years when he came to Pegasus. During that time he wanted to convert the business from a sole trader to a limited company to enable him to take on larger projects.
During the transition period the Full-Worx undertook a project for which the client failed to pay. The subsequent debt became the subject of a legal process – but Rob needed a short-term loan to fulfil the gap.
The challenges
The aim was £35,000 repayable over a three-year period to assist with cashflow as the business recovered from the losses incurred by the default and to help fund further projects.
The challenge laid in sourcing funding with favourable terms that could be implemented quickly to ensure that Full-Worx kept trading and did not incur any further significant losses because of the uncompleted project.
The Pegasus solution
Pegasus went to the whole of the market and found the best solution with Funding Circle, a peer-to-peer lending marketplace that allows investors to lend directly to SMEs. Funding Circle typically facilitates business loans of between £5,000 and £1 million with terms of up to five years with no penalties for early repayment. Its turnaround is quick, normally providing funds within one week.
Funding Circle is supported by British Business Bank Investments Ltd, the commercial arm of the British Business Bank, a development bank wholly owned by the UK government. In 2017 British Business Bank Investments Ltd committed £40 million, alongside other investors, to support economic growth by providing more efficient finance to smaller businesses.
Benefits for the customer
Pegasus was able to introduce Full-Worx to Funding Circle, which oversaw the whole process of financing the loan. It was able to cut out the costs and complexity of dealing with banks to deliver affordable funding quickly. This enabled Full-Worx to get back on track in a shorter period of time than may otherwise have been the case.
Rob was able to boost working capital and grow the business quickly without having the millstone of a long-term repayment plan around his neck.
What Full-Worx said
“Pegasus Funding Solutions understood our funding requirements quickly and the problems we faced as a business. After having looked at the whole market, Pegasus found the funding solution that best suited our needs. They were very professional in the way they sourced the best deal for us and were able get the whole process underway quickly.
“We were pleased with the results and would recommend Pegasus Funding Solutions to anyone needing funding for dealing with cashflow and business restructuring purposes.”
About Pegasus Funding Solutions
Pegasus Funding Solutions delivers specialist funding for all types of business at all stages of growth.
Whatever pressures your business may be under, and no matter where your company is in its cycle, at Pegasus we pride ourselves on our ability to deliver multiple solutions to meet the individual financial needs of companies like yours. We have access to funding for start-ups, expansions, contractions, turnarounds and even companies which are no longer supported by their banks. Pegasus can introduce you and your business to over 600 different sources of funds, including equity raising, debt funding and asset backed finance.
Because we are FCA regulated you can be confident of receiving a fully regulated and professional service.
Pegasus can assist in cashflow by providing invoice discounting or factoring through a panel of 44 funders. We adopt a competitive engagement approach (unlike most banks) to provide transparent and cheaper options for business. For companies that require funding for only a limited period we offer short-term single or selective invoice discounting or factoring.
Other options we offer include angel funding, venture capital funding, trade finance, turnaround finance, leasing and HP (including sale and lease back and even IT leasing), commercial property mortgages and bridging loans, Enterprise Finance Guarantee (EFG) and commercial loans.
In addition to funding, we offer comprehensive support and expertise to businesses through business planning and mentoring. Our team has a wealth of practical business experience which is available to our clients.
Our planning and mentoring services include: business plan scoring, business plan creation and re-writing, financial modelling, sales and marketing planning, due diligence responses, investor presentation creation, investor introductions and meetings and final investor negotiations.