Case Study 6

This was almost a start-up company in the South who had developed an interactive multi-media advertising system.
They required funds to fine tune the unit and get 20-30 pilot systems throughout the UK to develop the market

Design: Net Communications

Hosting: Consult-X Limited

Assignment Brief
To help develop the Business Plan, ascertain funding required and raise the agreed funding. The Director had no funds or assets to provide security as he was fully pledged in other businesses already.

The Assignment
The Business Plan was drafted and detailed budgets were done revealing a final funding figure of £80,000. Following detailed discussions and the usual "due diligence", NatWest Bank agreed to support the company with Small Firms Loan Guarantee Scheme funding of £80,000. The Bank then put the scheme to the DTI for sanction.

The Outcome
£65,000 unsecured loan raised using the Government's Small Firms Loan Guarantee Scheme through NatWest Bank. The loan was agreed over a term of 5 years fixed at a rate of 2.5% over Base plus the 1.5% DTI premium, and a drawn down in two tranches. We also negotiated an initial 12 month repayment holiday to ease the clients cashflow in the early stages of the business.