Lombard's tailored finance solution secures £300k of new business for Rapid Retail
- Lombard’s asset finance enables Rapid Retail Ltd to secure £300k of new business
- Rapid Retail benefits from a Lombard financing solution that is both innovative and tailored for the customer
- Rapid Retail enhances its cash flow as a result of Lombard’s flexible asset funding
Rapid Retail supplies the country’s biggest sporting venues with customised, fully-fitted modular shop and merchandising units. The company provides a range of other complementary retail services and has an impressive client list including Manchester United Football Club, Millennium Stadium and Adidas.
Rapid Retail required funding to assist in the growth and development of its business, but could not secure the finance it needed from its banking provider. Rapid Retail director, Nick Daffern took the decision to move to NatWest for greater support. Daffern explains, “Although our previous bank had an asset finance service it wasn’t receptive to our requirements and we were told it could not fund against our products. The units were deemed too risky and their future worth difficult to value.”
NatWest introduced Daffern to Lombard at the beginning of 2010. Using its expertise in asset finance, Lombard prepared a finance structure for Rapid Retail that was both innovative and tailored in meeting the customer’s needs. Ruth Davies, Relationship Manager at Lombard explains, “It was difficult to determine the fair value of the units, but we deduced that by looking at the company’s overall portfolio we could finance the new units against existing assets and contracts. No other provider had been prepared to take this stance, so we were determined to find a solution.”
Lombard’s relationship with NatWest enabled it to promptly bring together the asset checks and evidence needed to turn the deal around in just three months. Lombard constructed a bespoke deal, calculating the risk and identifying the security required to fund the additional retail units. Rapid Retail has now been able to take on new business with the confidence that, through Lombard’s hire purchase facility, it will eventually have ownership of the units whilst freeing up working capital in the interim.
Security may be required and product fees may apply.
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