Posted: 03 Jul, 2018
A Yorkshire cycle shop owner is gearing up for a bright future after completing on a re-financing deal with specialist lender, Together. Securing the £227,000 loan means Jon Dean, owner of cycle shop, CycleStreet has been able to clear his current commercial mortgage on his premises located in Layerthorpe in York, as well as paying off a several other loans which were originally taken out to assist with the set-up of the shop. As many of these loans were bearing high interest rates, Mr Dean is now thousands of pounds better off each and every month, money he can use to help his business grow even further.
Mr Dean said: “I’d struggled to get the loan I needed from a mainstream bank, because of the way my two companies are structured, and I was beginning to feel it wasn’t going to be possible.
“However, I was introduced to Together who agreed a finance package that meant we could clear our existing mortgage with the bank and improve our cash flow. We’re now ten per cent up on our business forecasts and looking to build even further in the long term, so everything’s heading in the right direction.”
The deal was masterminded by Charlotte Davison, an expert in commercial finance from Sheffield-based BTG Advisory, a division of Begbies Traynor Group plc. The company helps businesses of all sizes secure the funding they need to kick-start a growth project, assist with their cash flow, or purchase vital equipment or machinery to take their business to the next level.
After working closely with Ms Davison and the team at BTG Advisory to ensure he chose the most appropriate funding channel, Mr Dean opted for a 15-year loan with Together, secured against his bike shop. The money was not only used to consolidate existing borrowing, but also to put the business on solid financial ground and in a great place for expanding its operations in the future.
Barry Dillon, regional development director for Yorkshire at Together, said of the deal: “This was a particularly complicated case which involved re-financing the customer’s original loan away from the high street bank to free up working capital for Mr Dean to take his business to the next stage.
“We were pleased to provide the loan after visiting CycleStreet, and seeing what a popular business it is with the cycling-mad public in York, North and East Yorkshire. It will save him thousands in the short-term and put the business on a firm footing, allowing for expansion in the future.”
Charlotte Davison of BTG Advisory, commented: “Having reviewed CycleStreet’s situation, we could immediately see that the high interest loans it had taken out were having a negative impact on day-to-day working capital. By joining forces with Together, with whom we enjoy a strong relationship, we were able to restructure the firm’s finances, significantly reducing its monthly outgoings. This long-established and well respected York business is now on a more stable footing to expand and prosper.”
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