Case study
Case study: Restoring SSAS compliance and stability through refinancing
Background:
- Part of a wider complex structure involving a limited company, partnership and SSAS
- Refinancing existing indebtedness onto more favourable terms to facilitate other funding across group
- Facilitating SSAS lending to provide funding in the correct entity
A 4th generation Limited Company, partnership and SSAS with a complex corporate structure and multiple funding lines needed support to restructure their current facilities.
Requirements included a SSAS commercial loan, review of the complex and vast asset finance commitments and other borrowing the business had taken over a period of time.
A complex solution was sought in conjunction with the client's accountant to navigate the challenges while also managing its existing debt burden and maintaining business stability. The challenge was further complicated by constrained cash flow and limited evidence of affordability for additional borrowing.
Our approach:
The Leonard Curtis funding team began by conducting a detailed review of the entire group structure. Recognising that a standard EBITDA-based affordability assessment would fall short, the team instead produced 3-year CFADS (Cash Flow Available for Debt Service) models, as well as forward-looking forecasts, to give a more accurate picture of the business’s ability to service new debt.
To unlock liquidity, the company's existing HP finance was restructured over a 5-year term, reducing monthly repayments and improving short-term cash flow. This allowed for the business’s assets to be leveraged more effectively and generated the surplus needed to facilitate the solution.
With these measures in place, the Limited Company was able to evidence that it could afford to cover all its ongoing liabilities, and therefore the SSAS lender was able to provide the funding required at £700,000
Throughout the process, the team coordinated closely with asset finance providers and SSAS lenders to manage the refinance of over 60 individual assets, many requiring complex lender settlements and documentation. Communication was also consistent with the existing bank to confirm ongoing support and with lawyers to resolve complex land issues.
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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 a 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.
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