ThinCats provided the facility to Tim Cole, a dispensing optician, and Saagar Hirani, who used the funding to purchase the shares of Karyn Slatter, who was actively looking to exit the business.

Simon Brook, head of credit at ThinCats, said that this sort of business was superb from a credit perspective.

“People will keep going back to the same optician, generating regular cash flow.

“E&S – which offers a higher quality of service – does not seem to have been impacted by competition from the likes of Specsavers.

“It’s a nice deal.

“Banks don’t necessarily take the same view.”

Simon continued: “The asset cover ratio needed for the MBO [management buyout] was 20 times – not something high street lenders are comfortable with.

“Tim and Saagar initially approached [a] business bank, which first offered them less than they required and subsequently dropped the offer further.

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“Another bank offered them significantly less so that didn’t work either, as the vendor wanted the full amount up front.”

The firm’s accountant then approached East Midlands-based broker Reservoir Finance, who contacted ThinCats and another alternative lender with the case.

“Most businesses really don’t seem to be aware of ways of raising capital other than through high street lenders,” said Stuart Milton of Reservoir Finance.

“Within a couple of days of contacting ThinCats, we had an agreement in principle for the facility.”

Matthew Lawrence, local business development manager at ThinCats, met with the management team, saw the premises and labs, and contacted his credit committee, which was able to quickly agree the full amount.

“It’s the speed of the process and the understanding of the business that made the borrowers decide to go with ThinCats,” added Stuart.

“A large part of it was Matthew’s availability to meet the management [team].”

Following the management buyout, the business will continue to run as a limited company and Tim and Saagar have become joint owners.