Finance in the Child Centric Sectors
Nicholas Baker - Director & Head of Business Mortgages
Securing finance in the Child Centric Sectors was perceived as challenging over the past few years, but we have certainly seen that situation change over the course of 2015 with all leading lenders much more willing to consider supporting good existing operators as well as new entrants into the sector.
With the Bank of England Base Rate being at an historic low, existing operators are also recognising that now is a great time to review existing finance facilities and to look at the potential of refinancing their existing debt.
Over the last six months we have been receiving an increasing number of calls from operators looking for help in reviewing their existing finances. Rates have never been so low and with the introduction of various government schemes and initiatives some operators have realised that it could well be prudent to try and negotiate better terms.
The benefit of using an intermediary like Christie Finance is our experience in this sector and our ability to approach a wide range of lenders in order to secure you a tailored funding package.
Christie Finance assisted Steve Last of Buzzbee Babes Day Nursery in Ipswich, who was seeking bank finance to buy his partner out of the business. The nursery had only been established for three years and whilst it was profitable and well-run, their incumbent lender was unwilling to release funds for the partner buy-out. Within three weeks of being approached, Christie Finance had facilitated a formal offer of finance from a new lender who was able to provide a long-term debt facility on very competitive terms.
New Clients to Christie Finance, who were first time buyers, had twice attempted to buy a children’s day care business. After many months of frustration, most recently being hampered by an overly complicated lease, they decided on a change of direction.
They discovered an on-line Nanny Agency, which was very profitable and had low overheads, as it could be run from home. This was particularly attractive, as they also have two young children.
Christie Finance helped them realize their dream and funded 100% of the purchase price through a high street lender, plus some additional borrowing to help with the set up costs. The clients completed on the purchase in June despite being first time buyers and having no direct experience (although very strong business acumen).