Reducing Monthly Repayments by £2,500: Consolidation Loan Eases Cashflow Pressure for Engineering Business
Company Sector: Engineering
New Amount:
£290,000
Loan Type: Consolidation Loan
Loan Term:
72 Months
The Challenge
"They were under significant cashflow pressure that worsened during their quietest season."
Independent and family-run, our engineering business client specialises in material supply and fabrication, CNC machining and manual turning.
They were under significant cashflow pressure that worsened during their quietest season. They were making repayments on multiple loans on different dates each month, totalling around £10,000, which had become difficult to manage. Rather than fall behind, they were considering repayment holidays with their lenders and had become increasingly reliant on the business overdraft to bridge the gap.
Our Solution
“With the new funding in place, the client settled their shorter-term, higher-interest loans early, saving further on interest.”
Although cashflow was tight, the client had kept up with every repayment. Their strong repayment history helped us secure further funding from our Tier 1 lenders.
Bear secured additional capital for the client, refinanced their existing loan onto a lower interest rate with an extended repayment term, and negotiated a product that allows overpayments. The ability to overpay was important for our client as it gives them the option to make monthly overpayments during their peak seasons, cutting the total interest paid.
With the new funding in place, the client settled their shorter-term, higher-interest loans early, saving further on interest.
The Results
“We brought the client's monthly loan repayments down from £10,000 to £7,500.”
We brought the client's monthly loan repayments down from £10,000 to £7,500, all consolidated with the same Tier 1 lender. For our client, that meant:
- Cashflow pressure relieved
- Repayments kept up to date with lenders, protecting their business credit profile
- Existing agreements settled early, saving on interest costs
- Reduced reliance on the business overdraft
- The option to make overpayments and cut interest further once trading picks up
- Staff and suppliers paid on time, so the business could keep operating as normal
Struggling to manage multiple repayments or feeling cashflow pressure in your quiet season? Get in touch - 01832 770 273