Fabrics Plus Ltd is an independent, high street fabric shop, which had been run for many years by its previous owner. Robin and Sarah Honeywill bought the business as a going concern in June 2018 when they learned that the business was to close due to retirement. Sarah’s passion for craft work and soft furnishings had now turned into a business – a dream come true.
“Owning and running this shop together is a dream come true for us; following a passion has got to be the most rewarding work to do”.
Like any great fabric and haberdashery outlet they offer a huge range of fabrics and accessories, as well as offering sewing classes and sewing machine rental. They employ 7 members of staff who all stayed with the business when it was sold. Together they have grown the company in ways no one thought possible to explore new markets whilst continuing to support the local community.
The Challenge – Investment in Stock
When they purchased the business, they had to borrow £40,000 from a family member to buy the existing stock from the previous owner. This was a debt that they wanted to settle as soon as possible as it was a favour to plug a funding gap at the time of purchase and was never intended to be a long-term loan. An asset finance introducer referred them to BFS as they had experienced some road blocks when applying to borrow from the bank.
The BFS Solution
An Alternative Approach to Business Funding
Here at BFS, we love a challenge and we love to help businesses of all shapes and sizes get the funding they need to achieve their business goals. Meeting with Sarah and Robin, to hear their situation enabled us to advise them of all the funding options open to them.
After much discussion on the pros and cons of various types of funding that would suit them, it became apparent very quickly that by using their pensions, they would not only be able to pay back their family, but they would be able to increase their pension funds at the same time.
Secured Pension Funding
BFS secured pension funding enables people to access their own pension fund before they retire. In other words, access dormant funds that are yours. This little-known form of funding was perfect in this situation as using traditional forms of business funding had not worked out for them.
The Result – A Word from Fabrics Plus Ltd
The application was successful and Sarah and Robin received the full amount of money they had applied for.
“We couldn’t be happier with the way things have turned out, we are loving running our new business and can do so knowing our debts to family are paid – we are standing on our own two feet. Who would have known that the source of funding was right under our noses, in our own pensions? Of course, we realise the risk involved, but we are sure enough of our business plan, that we know the money will be paid back into our pensions by the time we retire. We also know for the future that if we ever need to borrow more, we can dip into the fund again. We would recommend Business Funding Shop to anyone – so refreshing to have options explained so well, without feeling that you are being sold to.”
Sarah Honeywill, Fabrics Plus Ltd
Do You Need Funding for your Business
If you’ve tried the banks and traditional avenues for funding your business with no success or perhaps you needed funding quicker than a bank can provide it. Call one of the team here at BFS and we can give you all the funding options open to you without the jargon. Call us now on 0800 047 2389.