The three owners of this organic gluten-free bakery believed they had spotted a small niche within the artisan bread industry. Having worked together in the past, they made a decision to come together in 2017 and set up a business offering a popular healthy bread option but also the growing demand for a gluten intolerant community.
The Challenge – New Equipment to Double Capacity
Business sales had been steadily increasing and the business had moved to bigger premises, including a small coffee and patisserie shop that now accounted for 30% of their turnover. However, this had put significant strain on their staff and capacity.
To increase the capacity of the business they needed to acquire new equipment for processing dough and additional ovens. This, in turn, would allow the business to double its capacity. The combined cost of these new machines was £40,000.
The directors initially approached their local bank, where they already had a £10,000 overdraft facility and we’re still paying off a £30 000 loan. However, the bank would only offer them a loan of just £20,000 at a significantly higher rate of interest, rather than the previous low rate they had been paying. At this point, they decided to search for alternatives and came across us at BFS.
The BFS Solution
The team at BFS started to consult with the three directors where it quickly became apparent that this could be a Peer to Peer Lending deal. Having a wide network of Peer to Peer lenders on the BFS panel they were paired with an expert who packaged the funding requirement and launched the bid. Within a few weeks of the bid launch, the bakery had acquired the relevant funding and even surpassed the amount of capital required. This enabled them not only to purchase the equipment but develop their IT infrastructure.
The bakery has continued to enjoy some exponential growth and has managed to reach out to the online community which it didn’t have before. The business has now started to look at creating its own registered “brand” which only serves to enhance the intellectual property value of its business.
Peer to Peer Lending from Business Funding Shop
If you’ve tried the banks and traditional avenues for funding your business with no success or perhaps you don’t want to risk your home as an asset, we can help. With a range of alternative business funding options available, call us now on 0800 047 2389.