Inspired Lending provides £260,000 RCF for Oxfordshire business

Inspired Lending has completed a £260,000 revolving credit facility (RCF) for an Oxfordshire IT consulting business, helping the company access flexible working capital while reducing its cost of borrowing.

The business had regular but unpredictable liquidity requirements, which had previously been met through unsecured company borrowing at comparatively high rates of interest.

Inspired Lending structured a 24-month RCF secured by a third-party second-charge over the shareholder’s residential property, providing the flexibility to draw down and repay funds as required throughout the term of the loan.

The structure allows the business to access liquidity only when needed, reducing financing costs while avoiding the need to arrange new borrowing each time additional funds are required.

The repayment strategy was based primarily on cash flow generated by the consulting business during the loan term.

As an additional layer of security, the shareholders also demonstrated their ability to refinance the property should this become necessary.

Gavin Diamond, CEO at Inspired Lending (pictured above), said: “Businesses don’t always need more debt. Quite often, they need better access to it.

“For companies with uneven cash flow, there is little sense in paying interest on money that may sit unused for months at a time or raising expensive short-term money at the last minute.

“A revolving facility gives borrowers the freedom to match funding to the way their business actually operates.

“It’s a good example of how specialist lending can solve commercial problems that traditional funding structures can’t always accommodate.”