£150K requirement. Two repayment structures. One solution.

The business required £150,000. The aim was to create a structure that gave the company access to the capital it needed while recognising that different parts of the requirement could be treated differently.

A standard fully amortising loan isn’t automatically the right answer simply because it is easy to understand. The repayment structure itself can have a significant impact on business cash flow.

For this transaction, greater flexibility was needed.

The £150,000 facility was split into £78,000 on a five-year repayment structure and £72,000 on an interest-only structure.

That allowed the overall funding requirement to be met without forcing every pound of borrowing into the same repayment profile.

The client obtained the full £150,000 in a structure designed around the business rather than an off-the-shelf loan format.

The interest-only element remained in place beyond the first year, becoming part of the company’s longer-term capital structure rather than a short-term fix.