G 5 TRADING CO LTD

WHOLESALE AND RETAIL TRADE INCLUDING REPAIR OF MOTOR VEHICLES

Funds Raised

£85,180.00

Final AER

18.79%

Loan term

60 MONTHS

Auction Closed

2019-02-14

Micro Loan Opportunities
Buy Capital Seller's
Premium
Price Buyer's
Rate
BuyBack
£9.39 +4.90% £9.85 17.55%
£28.16 +5.00% £29.56 17.50%
£9.39 +5.90% £9.94 17.07%
£9.39 +7.00% £10.04 16.55%
£18.77 +7.50% £20.18 16.31%

About the Business

Company Name: G 5 TRADING CO LTD Company Number: 08901977
Business Type: WHOLESALE AND RETAIL TRADE INCLUDING REPAIR OF MOTOR VEHICLES Years Trading: 3-5 years
Business Location: Birmingham

About the Risk

Risk rating

C

Default rate

13.00%

Bad debt rate

5.33%

About the Security

Security Offered:

Personal Guarantee - PG from sole director Mr Jagdeep Singh (est value included in property charge below)

Est. Equity: 0.00

All Assets Debenture - First priority fixed and floating charge over the applicant company

Est. Equity: 32496.80

Equitable Charge over Property - Equitable charge over the director\\\'s property - a Buy to let apartment

Est. Equity: 100000.00

Risk Indicators Identified:

Director/s has a poor personal credit history
A director/s have previous blemishes on their personal credit report
Disclosures
This listing contains disclosures from ReBS. Lenders are encouraged to read them in the profile tab
Unsatisfied CCJ(s) (personal)
One of the loan guarantors has incurred County Court Judgements in the past which are still unsatisfied

Important Files

Who are we?

The business was established in Feb 2014 by Mr Jagdeep Sigh, who has over 10 years of industry experience. The business has grown steadily since 2014, primarily through the investment of Jagdeep's own funds and more recently, thanks to funds borrowed from regional fund organisation (ART) that has since been paid off. The activity of G5 Trading Co Ltd is the wholesale of electronic and white goods supplies to UK-based customers . Business has grown twofold from last year in terms of turnover and net profit. The future looks good and the plan is to introduce new products and to achieve 50% higher turnover in the coming financial year. There is also scope to double the profit in 2019/2020 by achieving higher margins through the bulk purchase of goods at discounted rates.

Read more

Loan Offers

What is the loan for?

Funds are required to buy new stock of electronic and white goods at discounted rates and marketing to new clients through sub wholesalers. There is always opportunity to buy goods at discounted rate if the funds are readily available. This will produce higher margin of revenue and distribution rotates quickly to meet the demand and supply orders .

Why consider investing?

The business is growing every year and has a proven track record of meeting all liabilities from the start to the present day. Affordability can be demonstrated through the 2018 Management Accounts which show a profit of £23919 and additional comfort can be derived from the fact that the business has been able to maintain all repayment commitments to all creditors during this period of growth, including a loan from Funding Circle which will be repaid from this loan. Further, business revenue looks set to grow further in 2019/2020. G5 Trading Co Ltd established its name with suppliers and customers by trusting the service and the conduct of the business in professional manners. Business always been profitable and the aim is to achieve perpetual growth throughout the business cycle.

Disclosure

1. The director has a personal County Court Judgement on his credit file from 2014 for £32,990. This has not been enforced by the creditor who obtained the judgement since this date and the applicant does not believe that they have any intention of enforcing it. Given it's existence, we have requested that the director provide us with an equitable charge over his property so that in the event that the CCJ was to be enforced or further action was pursued, we would have additional assurances of a recovery by virtue of the security of the property. The rationale for this request is that in insolvency, an equitable charge would see our debt secured against the property and the proceeds from sale would be used to satisfy all legal and equitable charges before any unsecured creditors claims are considered.

2. The charge that we will take over the director's property will be an equitable charge as it is unlikely that the first chargeholder will provide the required consent to complete a full legal charge. An equitable charge functions largely in the same manner a legal charge would and holds similar rights in relation to securing the debt against the charged property. However, there are a few differences that lenders should be aware of. Firstly the charge will be registered slightly differently at the Land Registry. This means that our consent will not be required should the director look to take a second mortgage or remortgage his property. Secondly, we would not have a direct power of sale or possession but would instead have the right to apply to the court to obtain an order for sale based on the existence of the equitable charge. Thirdly, in insolvency, it would be up to the Official Receiver or Bankruptcy Trustee to verify the creation, application and enforceability of the equitable charge.

Security

This loan is to be secured by way of a Personal Guarantee, Debenture and an equitable charge over property.

A PG will be provided by the sole director, Mr Jagdeep Singh. Mr Singh has an estimated net worth of £100,000 derived from his ownership of a property with an estimated value of £220,000 and £100,000 estimated equity. As a charge over this property will also be taken, a value of £0 has been assigned to the PG in order for the value of the property to be only counted once.

A debenture will be taken over the applicant company. This will create a fixed and floating charge over all assets of the company. This will include the stock that is being purchased with our loan, any fixed assets and the debtor book which, according to a recent aged debtor report, stands at £34,755.00 presently.

Finally, a charge will be taken over a property owned by the director. This is a buy-to-let apartment which the director is the sole owner of. The property has an estimated value of £220,000 and an existing mortgage with £102,000 outstanding. This leaves around £118,000 of estimated equity which will be captured by our charge. The charge will be equitable in nature rather than legal, lenders are invited to see the disclosure note above for more information on the main differences.

DateAmountCapitalInterestReceived
14/03/2019£2,199.62£866.10£1,333.52
18/04/2019£2,199.62£879.65£1,319.97
18/05/2019£2,199.62£893.43£1,306.19
18/06/2019£2,199.62£907.41£1,292.21
18/07/2019£2,199.62£921.62£1,278.00
18/08/2019£2,199.62£936.05£1,263.57
18/09/2019£2,199.62£950.70£1,248.92Not Due
18/10/2019£2,199.62£965.58£1,234.04Not Due
18/11/2019£2,199.62£980.70£1,218.92Not Due
18/12/2019£2,199.62£996.05£1,203.57Not Due
18/01/2020£2,199.62£1,011.65£1,187.97Not Due
18/02/2020£2,199.62£1,027.49£1,172.13Not Due
18/03/2020£2,199.62£1,043.57£1,156.05Not Due
18/04/2020£2,199.62£1,059.91£1,139.71Not Due
18/05/2020£2,199.62£1,076.50£1,123.12Not Due
18/06/2020£2,199.62£1,093.36£1,106.26Not Due
18/07/2020£2,199.62£1,110.47£1,089.15Not Due
18/08/2020£2,199.62£1,127.86£1,071.76Not Due
18/09/2020£2,199.62£1,145.51£1,054.11Not Due
18/10/2020£2,199.62£1,163.45£1,036.17Not Due
18/11/2020£2,199.62£1,181.66£1,017.96Not Due
18/12/2020£2,199.62£1,200.16£999.46Not Due
18/01/2021£2,199.62£1,218.95£980.67Not Due
18/02/2021£2,199.62£1,238.03£961.59Not Due
18/03/2021£2,199.62£1,257.41£942.21Not Due
18/04/2021£2,199.62£1,277.10£922.52Not Due
18/05/2021£2,199.62£1,297.09£902.53Not Due
18/06/2021£2,199.62£1,317.40£882.22Not Due
18/07/2021£2,199.62£1,338.02£861.60Not Due
18/08/2021£2,199.62£1,358.97£840.65Not Due
18/09/2021£2,199.62£1,380.25£819.37Not Due
18/10/2021£2,199.62£1,401.85£797.77Not Due
18/11/2021£2,199.62£1,423.80£775.82Not Due
18/12/2021£2,199.62£1,446.09£753.53Not Due
18/01/2022£2,199.62£1,468.73£730.89Not Due
18/02/2022£2,199.62£1,491.72£707.90Not Due
18/03/2022£2,199.62£1,515.08£684.54Not Due
18/04/2022£2,199.62£1,538.80£660.82Not Due
18/05/2022£2,199.62£1,562.89£636.73Not Due
18/06/2022£2,199.62£1,587.35£612.27Not Due
18/07/2022£2,199.62£1,612.20£587.42Not Due
18/08/2022£2,199.62£1,637.44£562.18Not Due
18/09/2022£2,199.62£1,663.08£536.54Not Due
18/10/2022£2,199.62£1,689.11£510.51Not Due
18/11/2022£2,199.62£1,715.56£484.06Not Due
18/12/2022£2,199.62£1,742.42£457.20Not Due
18/01/2023£2,199.62£1,769.69£429.93Not Due
18/02/2023£2,199.62£1,797.40£402.22Not Due
18/03/2023£2,199.62£1,825.54£374.08Not Due
18/04/2023£2,199.62£1,854.12£345.50Not Due
18/05/2023£2,199.62£1,883.14£316.48Not Due
18/06/2023£2,199.62£1,912.63£286.99Not Due
18/07/2023£2,199.62£1,942.57£257.05Not Due
18/08/2023£2,199.62£1,972.98£226.64Not Due
18/09/2023£2,199.62£2,003.87£195.75Not Due
18/10/2023£2,199.62£2,035.24£164.38Not Due
18/11/2023£2,199.62£2,067.10£132.52Not Due
18/12/2023£2,199.62£2,099.46£100.16Not Due
18/01/2024£2,199.62£2,132.33£67.29Not Due
18/02/2024£2,199.62£2,165.71£33.91Not Due
Total:£85,180.00£46,797.20