Peer-to-business Loans

TRC specialises in the renovation of old timber windows, the installation of new timber windows and exterior building refurbishment. The business was founded 20 years ago by David Gibson, when, working as a carpenter, he came across a continental company that was looking for contractors to carry out work with its resin repair system. Says David Gibson: “I was very impressed with the system as it meant I could repair previously irreparable windows permanently, to a high standard, and it looked good.” Since then, the company has grown into related areas with 60 direct employees and up to 40 with subcontractors.

The Problem

TRC came to ArchOver needing working capital for expansion due to TRC getting bigger and wanting to double their turnover in the next three to four years. Over the past two years they have restructured the company, by dividing it into five divisions, all capable of taking on work independently from enquiry to handover and each headed by a director and as a result it has given them a lot of flexibility.

“We had a traditional factoring agreement, which provided us with 65% of invoice value when we raised it, and served us reasonably well, however, we just didn’t know how much money we would have every month, as before we could get money from the customer, we often had to have the invoice approved by a QS (quantity surveyor), which are sometimes hard to pin down. If there was a delay the money might not be available. We would often budget for the money from that invoice, so it throws you out if you can’t get it approved. You’re never sure where you are. The arrangement was difficult to manage, but there was no alternative until we discovered ArchOver’s crowdlending platform.”

The Solution

ArchOver arranged a record crowdlending loan of £1m for a fixed term of two years with an interest rate for lenders of 6.75%.

The loan facility of £1m has cleared their factoring facility but also has allowed TRC to grow, and has given the business a long term stable footing.

The key driver behind this loan’s success was bringing high value Lenders, seeking secured returns, together with a quality Borrower – TRC – looking for flexible and economical finance solutions for their business.

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