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The Challenge
An established alternative education provider based in Doncaster approached us for support as they prepared to expand into a new premises.
The business had seen consistent growth since inception, with turnover practically doubling year-on-year. They had already secured a new building and enrolled students, but needed additional funding to fully develop the space and make it suitable for their expanding intake.
The funding was required to refurbish and adapt their new building for student use, invest in equipment and facilities to meet regulatory and educational standards, strengthen their position when bidding for future student placements as well as manage their cashflow during this period of rapid growth.
In this instance, timing was key. The building was already operational, with students in place and projected revenue of £1.9m from September. With further investment, this was expected to double to £3.8m for the academic year.
The Solution
John Lloyd, Head of Cashflow and Lewis Alessandra, Relationship Manager, worked closely with the customer to structure a funding package that supported both immediate needs and longer-term growth. The £883,653 facility was made up of a £263,853 bridging loan to support the development and expansion of the new site, a £160,000 revolving VAT facility to help manage cashflow, and a £184,800 commercial mortgage to support the property strategy.
The Result
With the funding in place, the customer was able to complete works on the new building and create a suitable learning environment, allowing them to increase student capacity and strengthen future funding bids. Projected revenue grew from £1.9m to £3.8m from the new site alone, with improved infrastructure and resources allowing the business to continue their strong upward trajectory.
“Given the age of the building and the level of funding needed, this wasn’t a straightforward deal to get over the line. By working closely with Lewis and making the most of the options available, we were able to structure a package that brought together a range of facilities to make it work. The customer is now fully up and running from the new premises, with revenue and profit coming in as expected. We’ve also visited the site ourselves and seen the operation first-hand, which is always great to see. I’m really proud of the collective effort that went into this one, it’s easily one of the most satisfying deals I’ve been involved in.”