Unsecured Business Finance for Independent Cinema with Bad Credit

A South of England based independent cinema sought the urgent help of Genie Lending as it needed to raise £25,000 of short term working capital loan finance to allow it to pay suppliers pressing for immediate payment, the business owners having been let down by another funding source at the eleventh hour.

The primary director of the business had bad credit, an outcome of a bitter divorce with County Court Judgements, defaults and mortgage arrears all a feature of his poor credit profile. His personal bad credit also meant that the business struggled to agree industry standard credit terms with its suppliers resulting in tremendous cash flow strains at certain times of the year.

A detailed analysis of the business convinced Genie Lending’s Business Finance Manager that the company was still viable and we felt confident that if an urgent business loan could be provided, even if in lower figures than initially requested, the company could overcome its short term cash flow problems, giving it the necessary financial platform going into the busy winter trading period.

The Challenge

This was a challenging situation and it is fair to say that the application process had its hurdles and, in fact, two separate funders declined the application.  However, with Genie Lending and our client’s persistence, it finally paid off and together, we were able to obtain a commitment from an unsecured business loan provider to lend £15,000.  Although a little less than ideally required, it was over a 24 month period. The unsecured loan facility was approved in principle and the company had its funds in the bank 48 hours later.   The company was then able to settle its most pressing creditors, allowing the management to get on with serving customers without having to worry about the previously very real threat of business failure and insolvency proceedings. Local jobs were secured and an important local amenity kept alive against the odds. The lender will also provide a top up to the company’s borrowing facility next spring, assuming that the company keeps to its obligations.

Genie Lending is a trusted business finance service provider based in Wimborne, serving clients throughout the UK. If you think your business could benefit from an unsecured loan, get in touch with our team today. We look forward to hearing from you soon.