Funds Raised


Final AER


Loan term


Auction Closed


Micro Loan Opportunities
Buy Capital Seller's
Price Buyer's
£97.00 +1.50% £98.46 19.26%
£9.70 +2.50% £9.94 18.78%
£48.50 +5.90% £51.36 17.19%
£48.50 +6.00% £51.41 17.15%
£48.50 +6.50% £51.65 16.92%

About the Business

Company Name: LODHI & SONS LIMITED Company Number: 09245953
Business Location: Barnsley

About the Risk

Risk rating


Default rate


Bad debt rate


About the Security

Security Offered:

Personal Guarantee - PG from Hamza Lodhi (non-homeowner)

Est. Equity: 0.00

Personal Guarantee - PG from Shahbaz Lodhi (non-homeowner)

Est. Equity: 0.00

All Assets Debenture - Fixed and floating charge over all assets of the applicant company (see disclosure 3)

Est. Equity: 133000.00

Risk Indicators Identified:

Business acquisition
This loan is to fund a business acquisition. The experience of the purchasers should be considered.
Decreasing turnover
Recent financial reports indicate that this business has experienced declining turnover
This listing contains disclosures from ReBS. Lenders are encouraged to read them in the profile tab

Important Files

Who are we?

We are Hamza and Shabaz Lodhi, a father and son team with over 20 years of retail business experience, including running a Post Office in Darton and a clothes retail store.

Through market research, we have identified a convenience store in Huyton, Liverpool that is a prime candidate to purchase. It is a store that forms part of the national 'Supernews' chain. The chain has found this store difficult to manage and stock as the store is on a logistical limb for them, requiring them to staff and run the store at a currently modest profit.

As a result of the above, we have the opportunity to purchase the goodwill and leasehold interest in the store for £19,000, and the stock (including fittings and appliances), for an additional £31,000.

An additional £7,000 has been budgeted for working capital, £7,000 for a deposit towards the Lottery, and £5,000 towards the bond for newspapers.

This brings the total cost of acquisition to £69,000. £19,000 will be injected from our personal savings and a loan of £50,000 (plus fees) is sought.

Sales in this store were previously £890,000 per annum, and last year fell to £780,000 due, in my opinion, to over-staffing and poor stock control. It is our opinion that through a carefully researched business plan and closer management, turnover could return to and exceed the £900,000 PA mark.

There are no existing debts to the crown and no liabilities will be purchased. Once the business is purchased from Supernews, there are no legal ties to the existing supply chain and we are free to purchase stock from any supplier.

Similarly there are no liabilities on the current Darton Post Office. The Post Office will be closed down and the usable stock will be transferred to the newly purchased store in Liverpool. The freehold Post Office building will be sold when the right offer is received and the majority of funds from this sale will be reinvested into the Liverpool business.

Read more

Loan Offers

What is the loan for?

The funds we are looking for from ReBS are going to be spent in 2 separate areas of the business - firstly, £19,000 will be used to purchase the business and existing leasehold interest.

The remaining £31,000 will be used to purchase stock and to add more product lines into the business. We have met with the vendor and the staff of the existing business to determine what items are currently selling well. Upon completion of the purchase, any of the existing stock that we want to keep will be purchased by us. Any stock that we do not want to purchase from the existing owner will be replaced with new product lines which will be purchased separately. We are confident from our market research, interviews with existing staff and our own business experience that these new product lines will sell and have significantly higher margins than some of the stock the existing store sells.

Why consider investing?

Our experience and research has led us to firmly believe that this store is an ideal candidate to be purchased and ran more efficiently and successfully.

We are purchasing the business at a significantly discounted price as the turnover figures have declined due to a lack of focus and poor management. Further, we have looked through the existing business accounts and have identified approximately £40,000 of savings annually that we could implement without any detriment to the business. This, combined with our experience and the fact we will be operating the business ourselves gives us a great opportunity for growth and a long-term successful business.

Our approach will involve:

1. reducing the number of staff hours needed through working full-time in the store ourselves, which will create a saving of around £30,000 pa

2. moving the sellable stock from our existing Darton Post office to the Liverpool store – mostly around cards and stationary

3. add new product lines that we have researched (such as a mobile phone accessories and screen protector products) that have a significantly higher margin than some of the current poorly selling products

We have professionally researched and planned this purchase and are firmly committed to making it a success. We have instructed solicitors to review the current lease and ensure this is renegotiated and extended on favourable terms with the local council. The council have already confirmed the extension and new rent and both are on favourable terms. We have also instructed a firm of solicitors who specialise in employment law to oversee our meetings, appraisals and contract renegotiations with the existing staff members.

We hope that our confidence in the soundness of this purchase is demonstrated by the fact that we are offering a debenture and personal guarantees as security for the loan. We are also investing £19,000 of our own cash towards the deal (just under 30%) and my father and I have already planned our relocation to the new store in order to work full time within the business, thus providing a significant initial saving in staff costs.

ReBS Disclosure

1. Lenders should be aware that the target for this acquisition deal is a leasehold property currently owned by a national chain, not a limited company. We have been provided with some financial statements for the individual store being purchased, but as a non-limited company they do not have the same statutory requirements for keeping and filing financial statements. Therefore:

A) No Balance Sheet has been provided for the store, although lenders will be able to see details of the assets being purchased in the business purchase sheet attached.

B) Although the financial statements for the store have been assessed by our forensic accountant, the financial information provided in the finances tab and for download has not been filed at Companies House and the accounts do not have to follow the same statutory requirements as the published accounts of a Limited company

2. The purchasing company (and borrower), is Lodhi and Sons Limited. This is an existing business which is currently trading. It owns a freehold Post Office in Darton. For fullness, the financial statements of this company have been provided along with the accounts of the target business, however lenders should be aware that the Darton Post Office will be sold shortly after the purchase of the Liverpool store is completed. When the store is sold, there will be no outstanding liabilities carried over from the Darton Post Office.

3. The security for this loan includes an all asset debenture over Lodhi and Sons Limited. This debenture will create a floating charge over the freehold interest in the Darton Post Office, which is owned by the business. However, lenders should be aware that it is the intention of the director to sell this property in the months following the purchase of the Liverpool store. As the sale of this asset will represent a reduction in the realisable value of our security, part of the sale proceeds will be used to partially redeem the ReBS loan so that security coverage is maintained. To ensure this happens, our consent will be required before the property is sold. Further, a clause will be inserted into the loan agreement mandating the re-assessment of the security position at the point of sale. If the re-assessed value of the security is lower than the capital outstanding at the point of sale, any 'uncovered' capital will need to be repaid from the sale proceeds.


This loan will be secured by way of Personal Guarantees and an All Assets Debenture.

Personal Guarantees will be provided by both of the directors, Mr Hamza Lodhi and his father, Mr Shahbaz Lodhi. Neither individual is currently a homeowner, so the assigned realisable value of the Personal Guarantees is £0. As a result, in the event of default these PGs will likely be useful only as a tool to bring a reluctant debtor to the table or by way of an income payment order should we need to proceed to bankruptcy.

An All Assets Debenture will also be taken over the borrower business, Lodhi & Sons Limited. The debenture will create a fixed and floating charge over all assets of the applicant business. These will include the freehold intererest in the Darton Post Office (book value £200k, £122k equity), the stock being purchased (book value £31,000), fixed assets and the leasehold interest being purchased (book value £25,000). Lenders are advised to consult disclosure 2 above in relation to the freehold interest captured by this charge.

10/10/2019£1,455.73£568.66£887.07Not Due
10/11/2019£1,455.73£578.12£877.61Not Due
10/12/2019£1,455.73£587.73£868.00Not Due
10/01/2020£1,455.73£597.50£858.23Not Due
10/02/2020£1,455.73£607.44£848.29Not Due
10/03/2020£1,455.73£617.54£838.19Not Due
10/04/2020£1,455.73£627.80£827.93Not Due
10/05/2020£1,455.73£638.24£817.49Not Due
10/06/2020£1,455.73£648.86£806.87Not Due
10/07/2020£1,455.73£659.64£796.09Not Due
10/08/2020£1,455.73£670.61£785.12Not Due
10/09/2020£1,455.73£681.76£773.97Not Due
10/10/2020£1,455.73£693.10£762.63Not Due
10/11/2020£1,455.73£704.62£751.11Not Due
10/12/2020£1,455.73£716.34£739.39Not Due
10/01/2021£1,455.73£728.25£727.48Not Due
10/02/2021£1,455.73£740.36£715.37Not Due
10/03/2021£1,455.73£752.67£703.06Not Due
10/04/2021£1,455.73£765.19£690.54Not Due
10/05/2021£1,455.73£777.91£677.82Not Due
10/06/2021£1,455.73£790.84£664.89Not Due
10/07/2021£1,455.73£803.99£651.74Not Due
10/08/2021£1,455.73£817.36£638.37Not Due
10/09/2021£1,455.73£830.95£624.78Not Due
10/10/2021£1,455.73£844.77£610.96Not Due
10/11/2021£1,455.73£858.82£596.91Not Due
10/12/2021£1,455.73£873.10£582.63Not Due
10/01/2022£1,455.73£887.61£568.12Not Due
10/02/2022£1,455.73£902.37£553.36Not Due
10/03/2022£1,455.73£917.38£538.35Not Due
10/04/2022£1,455.73£932.63£523.10Not Due
10/05/2022£1,455.73£948.14£507.59Not Due
10/06/2022£1,455.73£963.90£491.83Not Due
10/07/2022£1,455.73£979.93£475.80Not Due
10/08/2022£1,455.73£996.22£459.51Not Due
10/09/2022£1,455.73£1,012.79£442.94Not Due
10/10/2022£1,455.73£1,029.63£426.10Not Due
10/11/2022£1,455.73£1,046.75£408.98Not Due
10/12/2022£1,455.73£1,064.15£391.58Not Due
10/01/2023£1,455.73£1,081.85£373.88Not Due
10/02/2023£1,455.73£1,099.84£355.89Not Due
10/03/2023£1,455.73£1,118.12£337.61Not Due
10/04/2023£1,455.73£1,136.72£319.01Not Due
10/05/2023£1,455.73£1,155.62£300.11Not Due
10/06/2023£1,455.73£1,174.83£280.90Not Due
10/07/2023£1,455.73£1,194.37£261.36Not Due
10/08/2023£1,455.73£1,214.23£241.50Not Due
10/09/2023£1,455.73£1,234.42£221.31Not Due
10/10/2023£1,455.73£1,254.94£200.79Not Due
10/11/2023£1,455.73£1,275.81£179.92Not Due
10/12/2023£1,455.73£1,297.02£158.71Not Due
10/01/2024£1,455.73£1,318.59£137.14Not Due
10/02/2024£1,455.73£1,340.51£115.22Not Due
10/03/2024£1,455.73£1,362.80£92.93Not Due
10/04/2024£1,455.73£1,385.46£70.27Not Due
10/05/2024£1,455.73£1,408.50£47.23Not Due
10/06/2024£1,455.73£1,431.92£23.81Not Due