The Challenge
A SEN (Special Educational Needs) school faced logistical challenges due to the poor condition of the existing access road. The road was a narrow farm track, making it difficult for taxis to efficiently drop off and pick up students. The school required a new tarmac road to improve access and accommodate the transport needs of its students. Additionally, as the school was looking to increase the number of students and facilities it wished to offer, it required some expansion and improvement works.
The school was in a growth phase, and the finances in the business were heavily reliant on the Local Authority contract and forecasted financials rather than historical track record - a scenario where tailored school improvement finance was essential to unlock their plans.
They approached us after visiting the Bath & West Dairy Show earlier in the year and speaking to one of the Team on the stand.
Our Solution
We started with an in-depth conversation with the owners to understand exactly what funding they required and what 'perfect' looked like for the business. This led to us providing a £48k loan specifically for the construction of the tarmac road, £100k working capital facility for future expansion upgrade on the school facilities, and £55k refinance to release cash tied up in assets which were funded using cash reserves.
The loans were structured over five years, allowing the school to manage their cash flow effectively by spreading out repayments. This financing was unique as it was based on future forecasts rather than the current business position of the school, demonstrating our commitment to supporting the school's growth and long-term needs through bespoke school improvement finance.
The Result
The project was funded through a series of loans into the business where interest was only charged on amounts drawdown, therefore saving the business money in the long run. The project allowed the school to improve facilities, expand headcount, while leaving them the cash in the business to spend freely as they wish rather than on specific equipment.
The funds were disbursed prior to the commencement of work, ensuring that the project could proceed as planned without financial delays. Importantly, the works were completed over the school holidays, minimising disruption to school activities.
'They've done what we thought was impossible, thank you for guiding us through the process and achieving exactly what you said you could do.'
Funding details
Net Cost:
£203,000
Deposit:
£0.00
Term:
5 years
Funds Delivered:
14 Days
