Restructuring £170,000 of borrowing for a growing retail jewellery business

Overview

The Situation

Our client is a well-established retail jewellery business operating two profitable outlets in Croydon.

The business had built a loyal customer base and demonstrated consistent turnover and strong gross margins over several years.

However, over time the company’s borrowing had become spread across multiple facilities. While each facility had served a purpose when originally arranged, the overall structure had become unnecessarily complex.

The directors approached us looking for a solution that would simplify their borrowing and reduce the pressure of managing multiple finance arrangements.

The Challenge

Although the business was performing well, retail jewellery can sometimes be viewed cautiously by lenders due to:

• stock-heavy balance sheets
  • exposure to discretionary consumer spending
  • sensitivity to wider economic conditions

In addition, the existing borrowing structure meant several facilities needed to be assessed simultaneously during underwriting.

The key challenge was presenting the business in a way that clearly demonstrated its financial stability and long-term viability.

Our Approach

We worked closely with the directors to restructure the company’s borrowing into a single, more manageable facility.

This involved:

• reviewing the existing debt structure in detail
  • consolidating multiple facilities into one term loan
  • presenting the company’s trading performance clearly to the lender

By positioning the refinance around stability, cash flow management and long-term sustainability, we were able to secure lender confidence.

The Outcome

A £170,000 business loan was successfully arranged over a 5-year term.

The refinance consolidated several existing facilities into a single structured loan, simplifying the company’s borrowing and reducing overall financing costs.

Most importantly, the new structure reduced monthly repayment pressure and improved the company’s cash flow position, allowing the directors to focus on continuing to grow the business rather than managing multiple finance arrangements.

Takeaway

Finance is not always about raising new capital.

Sometimes the most valuable outcome comes from restructuring existing borrowing.

By consolidating multiple facilities into one structured loan, we helped this business reduce complexity, improve cash flow and create a stronger financial foundation for future growth.