Positive Commercial Finance has arranged a funding facility through Lloyds Bank for Concept Chemicals, which was seeking to purchase the industrial premises they rented in a transaction worth over £2m.
Manchester-based Concept Chemicals is a manufacturer of technical chemicals used in cleaning, re-conditioning and detailing solutions across the automotive, logistics, marine and industrial markets, with 80% of production being exported around the globe.
The opportunity to purchase the industrial estate on which its factory is sited was a vital part of its strategy to expand its manufacturing operations to cope with rising demand, and to secure future employment and investment in Manchester.
The client also saw the need to purchase the units to prevent another business acquiring the buildings, which would have meant a relocation, which wouldn’t be practical for its locally based staff or business continuity.
Following a meeting, Positive Commercial Finance arranged a fact find carried out and subsequently several suitable lenders were approached that had a current desire to lend commercial finance. Lloyds sent its fully accredited specialist manufacturing manager out to meet Concept Chemicals and better understand the business and funding requirements.
Positive Commercial Finance liaised closely with Lloyds to formulate two funding options to discuss with the client – a standalone commercial mortgage plus VAT loan to help in the purchase of the property, or a full package including replacing the existing overdraft facility with their current bank.
The funding agreed was structured as a £1,395,000 commercial mortgage over 20 years plus a short-term VAT loan and was completed in six weeks.
Samantha Williamson (pictured) of Positive Commercial Finance, said: “It was a pleasure to help a client with such a well-established business and keen to purchase their premises to safeguard their future. It was imperative to progress the case swiftly and provide options for the client based on their mortgage needs and business plan.
“I’m very pleased with the outcome and they can now look forward to further success in a building they now own.”
Paul Teasdale, non-executive director at Concept Chemicals and Coatings Limited who led the deal for the company, said: “I was delighted with the responsiveness of Positive Commercial Finance and their professional expertise.
“Their extensive network of lender contacts meant we got the finance we needed, quickly, on better terms than other offers and generated a substantive saving from monthly repayments below what we were previously paying in rent. A winning combination and a very positive experience.”