GBSLEP

Ludgate Business Finance

As a specialist advisor in the direct lending and peer-to-peer sector, 
with top-level access to over thirty+ alternative finance platforms,
we can source and structure funding solutions that are as individual as your business

Contact Details

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Disciplines

Accountancy
  • Corporate Finance
  • Fund Raising

Who we support

  • Established Businesses

Office Locations

Edmund House 12-22
Newhall Street
Birmingham
West Midlands
B3 3GT

Case Studies

Overdraft Funding
Electronics Company: T/O £3-4M, profitable and traditionally cash rich. Hired large team from a competitor; projections showed possible need for funding while team bedded in. Required £500K in case of need facility for 12mths. Incumbent bank only interested in utilising Directors personal property as security. IF facility not suitable due to project/stage payments. Ludgate arranged £500K P2P overdraft facility, initial 12mth term, drawn on & repaid as cashflow dictates. 3-4 weeks to set up. Costs: Interest rate 9.0% charged only when used; 0.4% usage fee (only in months that facility is used); set up fee 4.0%. 4 months in, company has not yet drawn on the facility but has the comfort of knowing it is there if required.

Development Finance
Established small developer wanted to buy site within existing housing estate and build nine new homes. Banks were not interested - proposal deemed 'speculative'. Ludgate arranged funding to buy the site and build out. £750K overall facility. 70% LTV site purchase; 70% funding of WIP - drawn down in tranches. Monitored via QS reports and Ludgate site visits. Costs: Interest rate 14%; Set up fee 5.0%. No exit fees. 50% repayment from each plot sale. Site fully sold before completion and facility fully repaid ahead of time. Subsequent loan arranged to develop 2-unit infill site. Completed & repaid. Presently arranging £1.4m facility to buy & develop 19-unit site.

MBI Funding
HVAC contractor: T/O £11m, EBITDA £750K. Retirement sale. Experienced buyer but only small personal cash input. Total purchase price £2.4m. Funded by £1.2m 5yr cashflow loan. Balance funded by vendor loan notes. Loan split £650K fully amortising; £650K interest only. I/O portion to be funded by planned sale of non-core division within 2 years. Security: First debenture; unsupported PG Cost: Interest rate 12%; Setup fee 4.0%. No early repayment fees

MBO Funding
Buy-out by incumbent MD of yacht manufacturer. Simultaneous acquisition of the assets of a competitor. Accounts had been 'written for tax'; Ludgate engaged specialist FD to reconstitute to show true underlying profitability. Projections showed strong EBITDA going forward due to planned operational changes and sales increases. Purchase funded by MD contribution, vendor loan and a debt facility of £620K, fully amortising over 5 years. Security: First debenture, unsupported PGs Cost: Interest rate 10.5%, Set up fee 6.0%. No early repayment fees.

Acquisition Finance
IFA practice driving 'buy and build' strategy to acquire & integrate other practices. Nine acquisitions to date funded by P2P loans Security: First debenture to capture trail income, plus unsupported PGs Current proposal to refinance to another P2P lender for £1.5m with further acquisition funding to follow


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