Working in partnership to support a new franchise concept
Established in 1990, Kennet Equipment Leasing Ltd offers equipment finance to a variety of UK businesses. With the aim for quick decisions and a fast turnaround, it works directly with its customers to deliver a range of finance agreements to suit its customers personal business needs.
The customer is an established catering business with various franchise outlets across the UK and plans to open a new site for a young franchise concept with general catering equipment.
Overcoming road blocks
Little is known of the new franchise concept in the UK, so some funders would class this as a new business and would be reluctant to offer financial assistance.
The business net worth was strong, but heavily bolstered by intangibles made up from franchise arrangements; but take away the intangibles and the net worth was low.
The business Director offered a personal guarantee but evidencing the property portfolio and personal net worth was a challenge and online property indexing websites greatly disagreed with the Director’s predicted valuation of the home address.
Recognising business value
Steven Brown, Senior Account Manager, Kennet Equipment Leasing, met with Karen Fryer, Broker Development Manager, Close Brothers Business Finance to discuss his customer’s requirements. Following a review of the business’ bank statements, Karen found these to demonstrate affordability. Where some funders would dismiss these entirely, Karen considered and recognised the inherent value in the intangibles.
To support this further, Karen and Steven found evidence through Google maps of the property valuation showing the extended property and land in a suitably affluent area. This gave additional comfort. Karen was able to offer a tailor-made asset finance solution for the new franchise concept.
Supporting customers where others can’t
Steven Brown said: “By working with Karen, we were able to overcome any obstacles and structure a deal that enabled our customer to obtain the required equipment at a competitive rate for the sector. It is clear that Close Brothers don’t just operate on a ‘computer says no’ ethos and work with Brokers to look at the full picture. They were able to assist our customer when others couldn’t.”