12/07/2023
4 min read
Cube Metals Ltd case study
We helped a steel fabricator and welding engineer company refinance their CBILS and bridging loans to a more affordable monthly payment when other lenders wouldn't. The end result was a bright and more secure future for the business.
Team Atom
The facts
- The customer -
Cube Metals Ltd is a steel fabricator and welding engineer company based in the South East.
Loan type
RLS fixed term
Loan value
£1,500,000
Rate
5.89% fixed rate
over base rate
LTV
60%
Term
25 years (6 year commitment period)
- The broker -
Mickey Wong - ABL Business Ltd
Cube Metals Ltd’s story
Daniel, Cube Metals Ltd founder, has worked in the steel fabricating and welding engineering industry for over 20 years. The business was opened in 2017.
Cube took out a CBILS loan with the purpose of buying their own trading premises and unlocking future growth for the business. After the pandemic, Cube Metals Ltd needed to refinance previous CBILS and an additional bridging loan as the monthly payments had become unsustainable.
What happened next?
The business came to Mickey Wong at ABL Business Ltd. He took the case to big name high street lenders first, but they didn’t have any interest in refinancing a loan from a past government scheme. They wouldn’t consider the fact that the business had grown year on year, even through the pandemic.
How did we help?
After submitting an application with Atom bank, Mickey was able to secure an agreement in principle, 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. The rate was substantially more competitive than the preliminary offers Daniel had previously been quoted from another lender.
Initially, this was thought to be impossible, but both broker and Atom worked hard alongside Square One Law as solicitor to ensure the loan would be completed, and funding was secured through the Recovery Loan Scheme (RLS) within the timeframe. 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. Refinancing through the RLS has also reduced Cube Metals Ltd’s monthly loan payment by an estimated £30,000 per month, ensuring repayments are more manageable over the long term.
Additionally, the new facility funded by their loan is helping the business to 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 more services, which means it’s in a stronger position and has become more resilient to market changes. And, they’ve been able to outsource less, which has reduced costs to the business.
Daniel, founder of Cube Metals Ltd, commented:
“The Recovery Loan Scheme saved our future. While other lenders didn’t see the bigger picture, Atom did and we may not have survived without them.”
Mickey Wong, broker at ABL Business, added:
“I am glad we were able to achieve a positive outcome for Daniel and his long term plans for the business, with Atom bank going above and beyond to ensure completion on time.”
The information contained in this post is of an informative nature and should not be used to make financial decisions. No one should act on such information without appropriate professional advice.
Any offer of a loan facility will be subject to status and an assessment of your application.