A broker contacted us about a new client of his who had previously taken out an 18 month loan for £250,000 at £30,000 per month with an SME FinTech lender.
The business had taken out the loan as it needed the money quickly but the repayments are a real stretch and the director is concerned about their personal guarantee that the lender insisted as the loan is unsecured.
Using existing pension funds, the Company is able to refinance the existing loan after 6 months, reduce the monthly loan payments to £3900, the interest being paid to the director’s pension funds and the personal guarantee be removed.
