We recently supported a healthcare provider in securing a £200,000 term loan through our network of CDFI partners to refinance a six-figure HMRC Time to Pay (TTP) arrangement and consolidate expensive short-term credit charging up to 40% APR.
Despite being led by an experienced operator, the business was under significant financial pressure.
With a £1M+ HMRC liability and multiple high-cost loans, the founder was paying over 40% APR. This created monthly repayment strain and made it nearly impossible to manage cashflow in a sustainable way.
Traditional lenders viewed the business as overleveraged. Most community finance options were not available for refinancing and were restricted to growth use cases only.
Through one of our government-backed funding partners, we unlocked a flexible CDFI term loan funded through the CEF initiative.
This facility allowed for refinancing, which is a rare use case for CDFI funding. It also included no early repayment penalties and offered a significantly lower interest rate. We helped position the business as a strong candidate by reframing their repayment history and future potential.
In just 14 days, the business secured a £200,000 loan at a competitive APR over 5 to 6 years. This move cut their interest rate by more than half and freed up vital working capital. Overall, the business saved over six figures in annual interest payments.