Navneet Bansal opened the nursery, Harvey House, in December 2019, but four months later it was forced to close because of COVID-19.
Fiduciam has completed a Coronavirus Business Interruption Loan Scheme (CBILS) loan for £840,000, to a children’s nursery in Leytonstone, North East London.
The CBILS was designed to support the continued provision of finance to smaller UK businesses (SMEs) that have been impacted by the COVID-19 pandemic.
The loans are delivered through lenders accredited by the British Business Bank (BBB).
Navneet Bansal opened the nursery, Harvey House, in December 2019, but four months later it was forced to close because of COVID-19.
The owners had to make debt service payments of £113,000 per annum, which quickly became unsustainable.
Fiduciam provided a two-year CBILS loan which decreases the debt servicing cost by 64% for the next two years.
The nursery qualified for the CBILS loan because it met the requirement of being a viable business before the outbreak of the pandemic and one that is expected to do very well in a more normal trading environment.
The nursery employs 17 staff to provide a high-quality childcare service, which is reflected in its 9.5/10 rating on daynurseries.co.uk.
High street banks were unable to provide a CBILS loan as the nursery businesses did not yet have a track record for the required length of time.
The Fiduciam CBILS loan now allows the nursery to establish a track record the next two years so that it can then refinance with a cheap high street bank loan.
Johan Groothaert, CEO of Fiduciam, said: “As a start-up SME, it is difficult to get finance in the best of times. Thanks to CBILS we have been able to lower the financing costs for such SMEs.
"Harvey House is run very professionally by experienced and passionate staff – we love to lend to such enterprises.
“It is thanks to the brave step of Navneet, setting up their own children’s nursery that Leytonstone’s shortage of high-quality children nursery places is being addressed.
"We are confident that Harvey House will be very successful and provide an excellent early learning experience for hundreds of children in the coming years.”
Navneet Bansal, owner of the nursery, said: “We are very glad to have received the Fiduciam CBILS loan.
"Without it, finance costs would have been overbearing and we did not want to pass on the cost to the parents or cut the quality of our childcare.
"The Fiduciam CBILS loan puts our nursery on a very stable financial footing and ensures that all children continue to receive the discovery and learning experience they deserve.
"We were also impressed by the efficiency of the Fiduciam CBILS loan application process.”
