Refinancing a Trading Business on EBITDA Performance

The Requirement:

Our client, an experienced operator, approached us to arrange a refinance and capital raise to repay some a further commercial mortgage with another provider. The funding needed to be structured around the trading performance of the business, with the lender assessing the company accounts and serviceability on an EBITDA basis.

About The Property:

The security was a substantial owner-occupied farm shop and café in Milton Keynes. The site also included additional units let to tenants although this was being carved out of the security mix.

How we helped:

We worked with the existing lender to structure a refinance that also incorporated a capital raise, while ensuring the proposal reflected the strength of the trading business. This involved presenting the company accounts on an EBITDA basis, so the lender could assess the borrowing against operational performance. By clearly setting out the business model, site income and overall affordability, we were able to support a funding structure suited to the client’s ongoing trading needs.

The Outcome:

We secured a £300,000 refinance and capital raise with the existing lender. This provided the client with a practical long-term funding solution, aligned to the performance of the business.