Mechelec Ltd is a car repair and servicing business with a vastly experienced management team boasting over 80 years of industry experience.
The business celebrates 32 years of trading this year and by July of next year annual turnover is expected to be circa £1m.
Over the course of its long history, the company has consistently delivered a strong turnover:
– 9 months to 30 April 2015: turnover £609,510 – gross profit £232,893
– 12 months to 31 July 2014: turnover £819,130 – gross profit £309,693
– 12 months to 31 July 2013: turnover £890,084 – gross profit £248,141
The company is seeking to increase turnover to a projected £964,500 for year-end July 2016 with a £380,980 gross profit and operating profit of £77,255.
How will this be done?
The garage is currently approaching one of the busiest periods in the company’s history. The workforce is inundated with new projects; the order book is increasing daily – and to turn orders into profits, three new permanent skilled staff are duly required.
To finance the new employees the business requires a £100,000 loan over 60 months. The documents section of the pitch contains details of a strong balance sheet, which a company debenture is secured against. The company has significant capital reserves and the loan will be underpinned by assets in the business.
Overheads will be little affected by the influx of new work and therefore the majority of the investment will be turned directly into profit.
Help the three directors finance growth and keep the business continue to build on its long history.
Purpose of Loan
The loan will be used for three purposes:
1. Provide working capital to enable three permanent skilled staff to be employed to complete work from an increasing order book.
2. To repay an existing invoice discounting facility that is no longer relevant to the business.
3. To purchase paint oven equipment that will enable paint shop work to be increased.
The directors of the company have between them over 80 years experience in the motor and commercial vehicle body building industry. Peter Pullin and Eric Cooper have been directors since the company’s formation in 1983. Graham Lee has been a director for 21 years. All have a depth of experience and understanding in all areas of the business.
Why lend to us?
Mechelec Ltd is an established and successful business. Over the past years the company has re-invested profits into the business to ensure that it is stable and viable. The company has significant capital reserves and any will be underpinned by assets in the business.