Business Finance for Growth Through Increased Banking Facilities

Growing businesses often outgrow their existing banking facilities. However, many banks are reluctant to increase borrowing, even when a business is performing well.

In this case study, Positive Commercial Finance arranged a tailored Business Finance for Growth package that significantly increased a client’s available funding and supported their long-term expansion plans.

The Opportunity

Our client operated a well-established business supplying heating fuel, coal and logs to customers in rural communities.

Demand for the business continued to grow, creating opportunities to expand operations and serve more customers.

However, the company’s existing bank was unwilling to increase its overdraft facility, limiting cash flow and slowing future growth.

The Challenge

The business was profitable and well managed, but its funding no longer reflected its performance or ambitions.

The client needed a lender that would look beyond historical borrowing limits and assess:

• The strength of the business.
• Current financial performance.
• Future growth plans.
• Overall affordability.

The aim was to secure both improved working capital and longer-term funding to support expansion.

Our Solution

Positive Commercial Finance carried out a detailed review of the company’s financial position before preparing a comprehensive funding proposal.

We approached a carefully selected group of High Street lenders, presenting the strengths of the business alongside the client’s plans for future growth.

Several lenders responded positively.

After comparing each proposal, we helped the client select the banking package that offered the greatest flexibility and long-term value.

Deal Structure

• Loan to Value (LTV): 60%
• Interest Rate: 2.5% above Bank Base Rate
• Arrangement Fee: 1.5%
• Business Overdraft: £300,000 (12-month facility)
• Commercial Mortgage: £410,000 (15-year term)

The Result

The chosen lender more than doubled the client’s overdraft facility, significantly improving day-to-day cash flow.

In addition, the lender provided a £410,000 commercial mortgage, giving the business access to long-term funding that supported its expansion strategy.

With stronger banking facilities in place, the client was able to accelerate growth with greater financial confidence.

This case study demonstrates how Business Finance for Growth can combine working capital and long-term lending to help established businesses reach the next stage of development.