Government Backed Loan Scheme for Water Sports Supplier to Refinance and Grow
Featured Snippet: Articus Finance successfully secured a government backed loan scheme for a water sports supplier, enabling the refinancing of expensive short-term debt and providing capital for business growth and operational expansion.
Introduction
Accessing a government backed loan scheme can be a vital lifeline for businesses seeking to refinance costly debt and invest in growth. This case study highlights how Articus Finance supported a UK-based water sports supplier with just over two years of trading history to refinance short-term expensive loans and secure additional capital to expand their operations and improve cash flow management.
Client Background
The client is a UK resident and citizen operating a retail business in the water sports sector. Despite a relatively short trading history of just over two years, the business faced significant cash flow challenges due to high monthly repayments on short-term loans taken during its first year. These repayments limited the client’s ability to invest in stock and marketing, constraining growth potential and operational flexibility.
Additionally, the client was keen to stabilise the business finances to position the company for sustainable long-term success in a competitive market. The need for a longer-term, affordable financing solution was critical to achieving these objectives.
The Challenge
The client’s business was trading at a loss, which made securing traditional financing difficult. The key challenges included:
- Short Trading History: Just over two years, limiting lender options and increasing perceived risk.
- Trading Losses: The business was not yet profitable, which further complicated access to finance.
- High Cost Debt: Existing short-term loans with expensive monthly repayments burdened cash flow and restricted investment capacity.
- Growth Constraints: Limited capital available for stock acquisition, marketing campaigns, and operational improvements.
- Cash Flow Management: The business required a financing structure that would ease monthly repayment pressures and improve liquidity.
These factors required a lender willing to consider government-backed schemes and provide longer-term, affordable financing tailored to the client’s unique circumstances.
Our Solution
Articus Finance identified and approached a panel of lenders participating in the Government Growth Scheme (formerly the Recovery Loan Scheme). Our approach included:
- Presenting a comprehensive financial profile despite trading losses, highlighting the client’s growth potential and strategic plans.
- Securing an unsecured business loan of £165,000 over a 72-month term, providing manageable monthly repayments.
- Refinancing the existing short-term expensive debt to reduce monthly repayments and improve cash flow.
- Providing additional capital to invest in stock, marketing, and operational improvements, supporting business growth and market competitiveness.
- Managing the application and approval process to ensure timely funding and minimal disruption to business operations.
- Offering ongoing advisory support to help the client optimise financial management and plan for future growth opportunities.
As a result, the business transitioned to profitable trading and positioned itself for sustainable growth, with improved financial stability and operational flexibility.
Key Highlights
- Client: UK resident and citizen operating a water sports retail business
- Loan Type: Unsecured business loan under government backed loan scheme
- Loan Amount: £165,000
- Loan Term: 72 months
- Purpose: Refinance short-term expensive debt and fund business growth
- Outcome: Improved cash flow, profitable trading, and enhanced operational capacity
- Ongoing advisory support for financial optimisation
Why Articus Finance Delivered
Articus Finance’s expertise in government-backed lending and business finance enabled us to secure a tailored solution for a challenging case. Our strong lender relationships and understanding of government schemes ensured the client accessed affordable, longer-term funding despite trading losses and a short trading history.
Our client-centric approach, combined with proactive communication and strategic advice, makes us a trusted partner for businesses seeking growth capital and refinancing options. We remain committed to supporting our clients through every stage of their financial journey.
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Final Thoughts
This government backed loan scheme case study demonstrates how Articus Finance supports businesses with challenging financial profiles to refinance costly debt and secure growth capital. Our tailored approach and deep market knowledge empower clients to achieve sustainable business success and operational resilience.