ABL Business Ltd worked with Atom Bank to provide a £1.5m loan to Cube Metals Ltd, a steel fabricator and welding engineer company, whose applications had previously been rejected by high street lenders, to help refinance an existing Coronavirus Business Interruption Loan Scheme (CBILS) loan.
Cube Metals Ltd, took out a CBILS loan with the purpose of buying a permanent trading premises and unlocking future growth for the business, however after the pandemic Cube Metals Ltd enlisted the help of ABL Commercial Finance Consultant, Mickey Wong to advise on the refinance of the CBILS and bridging loans as the monthly payments had become unsustainable.
After reviewing the position of the business, Mickey identified that Cube Metals Ltd had grown year on year, even throughout the pandemic and the current trading position was strong. After submitting to the High Street Banks, unfortunately the refinance was turned down, which is when Mickey approached Atom Bank.
An agreement in principle was secured with Atom bank, but there was a tight turnaround as the loan needed to be completed in 13 working days to avoid a default on the bridging loan.
Meeting the deadline saved Cube incurring default costs and further re-arrangement fees estimated to be at £50,000, which would have been payable if the deadline had been missed, and the refinancing was completed through the RLS.
The refinance had a positive effect, reducing Cube Metals Ltd’s monthly loan payment by an estimated £30,000 per month, ensuring repayments are more manageable over the long term.
Cube Metals Ltd is a specialist in structural, architectural and agricultural metalwork. The new site and reduced monthly costs are helping the business continue its post-pandemic growth and build security for the future. Cube has been able to set itself up as a one-stop shop that offers an increased number of services, putting it in a stronger position and becoming more resilient to market changes. The business has also been able to outsource less, reducing costs to the business.
Tom Renwick, head of business lending at Atom, said: “We know times have been tough for small businesses, and all too often firms who need finance are overlooked by high street lenders. “We were delighted to work with ABL Business Ltd and help Cube Metals Ltd get access to the refinancing they needed to help the business continue to grow.”
Mickey Wong, broker for ABL Business, added: “I am glad we were able to achieve a positive outcome supporting long term plans for the business, with Atom bank going above and beyond to ensure completion on time."
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