Car specialist thanks broker and facilitator after rejections from high-street lenders
Atom Bank has facilitated a loan amounting to £1 million for Bill Rawles Classic Cars, a Hampshire-based classic cars restoration and maintenance specialist, after a review of the car specialist’s long-term borrowing strategy and a realisation their existing debt needed a change.
The car specialist approached the intermediary-only lender after it was rejected by high-street lenders when it was incorrectly classified as ‘motor trade’. Atom Bank, by contrast, looked into the true nature of business of Bill Rawles Classic Cars, a second-generation family business, it stated.
With the help of Tamara Renshaw, commercial finance broker at Productivity Finance, a review of the firm’s performance was carried out, as well as an assessment of the business’s pipelines and projections. A five-year fixed rate loan of £1,063,125 was agreed upon and completed with a 25-year repayment profile, and this amount represented a loan to value (LTV) of 56% over the site premises.
In a news release, Atom Bank said refinancing was sought for the business to exit an existing commercial mortgage for a fixed rate product when monthly repayments became unaffordable after several interest rate increases.
“This would ultimately support the generation of additional cash flow and the confidence to build a stronger platform for future growth. The original funds were used to purchase a new, larger site on which to trade, also offering the potential of further development,” according to the news release.
High-street lenders not having the “inclination”
David Castling, head of intermediaries at Atom Bank, said the case of Bill Rawles Classic is not isolated. There are similar cases where firms are being rejected by high-street lenders who “don’t have the time or inclination to really get to know the ins and outs of the business and dig a little deeper into their pipelines, projections, and performance, pre- and post-COVID.”
“This case is a prime example of a forward-thinking family business with a loyal customer base who has grown organically over the years. They required some additional funding and support to help facilitate their longer-term growth plans,” said Castling.
“Alongside our BDM and underwriting team, Tamara played a key role in supporting this case from introduction through to completion, and we are looking forward to seeing how our funding can further transform this fantastic business.”
“Sector specific credit policies should be subject to interpretation and not just viewed as black or white. That is exactly what Atom did, they asked a few more questions to understand the true nature of the business which other lenders hadn’t been prepared to do,” said Renshaw. “From the initial enquiry stage through to being able to actually build a relationship with a dedicated underwriter, I found them to be highly professional, responsive, and flexible in their approach. All of which culminated in the most important thing — a very happy client.”
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