Case studies
Case study: Funding growth for an established childcare provider
Background:
- Established childcare provider seeking capital to expand
- Existing lender held security following a recent Management Buy Out
- Speed and pricing were key priorities
A well-established and highly profitable childcare provider in the Midlands had outgrown capacity at its existing sites. With strong trading performance and a clear expansion plan, the business needed additional capital to increase capacity at an existing site and secure the new location from which to trade.
Our Approach:
Referred to the funding team, Leonard Curtis worked with the owners to secure the funding needed to support their next phase of growth. The management team were looking to expand one of their existing settings and convert a commercial premises into a brand-new fifth location. To achieve this, the business required £500,000 of additional capital.
A key consideration from the outset was the existing lender’s security position, which had been put in place to support a recent Management Buy Out. Rather than introducing a new lender and complicating the security structure, Leonard Curtis identified an opportunity to work with the incumbent bank and structure a solution that consolidated and improved the overall position.
Rather than simply layering a new £500,000 facility on top of the existing one, Leonard Curtis negotiated a single consolidated facility on a fresh 10-year term. This not only simplified the overall debt structure but also reset the clock on when the bank could require a revaluation, an exercise that typically falls at the client’s expense. The new facility was secured without the need for valuations or solicitor involvement, saving the client time and cost at the outset. The new site remained unencumbered, preserving flexibility for the future.
The outcome delivered everything the client needed: the funding to grow, a cleaner and more resilient debt structure, and a process that moved quickly without unnecessary complexity.
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.