PMM BUSINESS LIMITED

Automotive

Funds Raised

£240,000.00

Final AER

18.92%

Loan term

60 MONTHS

Auction Closed

2016-08-04

Recovery News
This loan may be behind with its repayment schedule and so microloan trading has been suspended while we work to help the business recover its repayment form. Please see the Loan Updates tab for recent updates.

About the Business

Company Name: PMM BUSINESS LIMITED Company Number: SC499698
Business Type: Automotive Years Trading: Less than 2 years
Business Location: Kilwinning

About the Risk

Risk rating

C

Default rate

13.00%

Bad debt rate

5.33%

About the Security

Security Offered:

Personal Guarantee - Director\'s estimated new worth £225,000. Personal Dwelling estimated value of £150,000, Estimated equity of £150,000, Property 1 Estimated Value £75,000, Estimated Equity £75,000.

Est. Equity: 225000.00

All Assets Debenture - This will pick up the stock, any debtors as well as fixed assets including the lease, currently expiring 2019, but renewable for a further 10 year timescale at that point.

Est. Equity: 36000.00

First Charge on Property owned by the Director - Property estimated value £120,000 .

Est. Equity: 120000.00

First Charge on Property owned by the Director - Property estimated value £140000

Est. Equity: 140000.00

Risk Indicators Identified:

Business acquisition
This loan is to fund a business acquisition. The experience of the purchasers should be considered.
Previous Failed Businesses
One or more of the directors has been involved in a failed business

Important Files

Who are we?

We are PMM Business Limited. The company was set up on 5th March 2015 to act as a vehicle for the acquisition of a long established Motor Parts Specialist, Q Car Parts. PMM Business Limited is 100% owned by Mr James Pollock, who has over 20 Years experience in motor trade sales along with an accountancy background, qualified as a Scottish Law Accountant. Q Car Parts, the target firm in this friendly acquisition, has been ran by the existing owner for almost 30 years. The business is the primary supplier of vehicle parts and accessories in Irvine, Ayrshire. The simple objectives are to run a profitable local business, continuing with the high service and product standards that have been the watchwords of Q Parts for many years. Existing staff will be retained covering prime functions of purchasing and supply chain, training. James Pollock intends to be both active at the front end of the business but also take on the management functions including finance, marketing, PR, HR, and general administration of the business.

Read more

Loan Offers

What is the loan for?

We require the loan to acquire the trading business of Q Car Parts, this is a lease hold business and has a stock valuation of over £210,000. The loan will purchase the business, along with the goodwill, all stock, existing trade customers. A total purchase price of £300K has been negotiated for the business, £245K to come from this loan arrangement and the balance from an introduction of cash, non borrowed, from the 100% shareholder's savings. James Pollock will also introduce adequate cash to fund the initial working capital needs of the business.

Why consider investing?

PMM Business Limited's owner comes with the strengths of both knowledge of the industry, acquired at "the sharp end", together with additional in depth financial management skills from his accountancy training and practice. The retention on a consultative basis of the current owner for a guaranteed two year period will enable a seamless takeover with minimal disruption to existing supplier and customer relationships as well as giving James the opportunity to gain knowledge of the specifics attached to the Q Parts business. Clear business development opportunities have also been identified with an online marketing strategy including Ebay, Facebook and Twitter in the course of development recognising that stock turn can be significantly improved without margin sacrifice.

ReBS Disclosure

Lenders should be aware that the accounts listed on this forum are the accounts of the target business and not the applicant company. The target business is not incorporated so the format of the accounts is slightly different to a normal company's accounts. In particular we wish to draw to the lender's attention the fact that the drawings of the previous business owner have not gone through the profit and loss account as would directors' salaries. When the owner's drawings are reflected in the profit and loss accounts, the profit before tax figures are adjusted as follows: 2014 £47,949 originally reported reduced by £23,700 to £24, 249. 2015 £30, 886 originally reported reduced by £26,500 to £4,386. 2016 £14,351 originally reported reduced by £5,280 to £9,071.

Security

The loan will be secured by the following: 1. Mr Pollock's Personal Guarantee will be backed by formal first legal charges over two properties owned by Mr Pollock outright, valued at £115K and £120K respectively. The former is his residential property occupied by Mr Pollock alone. 2. A fixed and floating charge over the company's assets via a first priority debenture. This picks up the stock, any debtors as well as fixed assets including the lease, currently expiring 2019, but renewable for a further 10 year timescale at that point. 3. It is proposed for his own benefit that Mr Pollock will arrange Personal Guarantee Insurance in the sum of £50K which will be assigned to ReBS.

DateAmountCapitalInterestReceived
04/09/2016£6,214.59£2,431.47£3,783.12
04/10/2016£6,214.59£2,469.80£3,744.79
04/11/2016£6,214.59£2,508.73£3,705.86
04/12/2016£6,214.59£2,548.27£3,666.32
04/01/2017£6,214.59£2,588.44£3,626.15
04/02/2017£6,214.59£2,629.24£3,585.35
04/03/2017£6,214.59£2,670.69£3,543.90
04/04/2017£6,214.59£2,712.79£3,501.80
04/05/2017£6,214.59£2,755.55£3,459.04
04/06/2017£6,214.59£2,798.98£3,415.61
04/07/2017£6,214.59£2,843.11£3,371.48
04/08/2017£6,214.59£2,887.92£3,326.67
04/09/2017£6,214.59£2,933.44£3,281.15
06/10/2017£6,214.59£2,979.68£3,234.91
06/11/2017£6,214.59£3,026.65£3,187.94
06/12/2017£6,214.59£3,074.36£3,140.23
06/01/2018£6,214.59£3,122.82£3,091.77 (24 days late)
06/02/2018£6,214.59£3,172.05£3,042.54
06/03/2018£6,214.59£3,222.05£2,992.54
06/04/2018£6,214.59£3,272.84£2,941.75
06/05/2018£6,214.59£3,324.43£2,890.16 (15 days late)
06/06/2018£6,214.59£3,376.83£2,837.76 (6 days late)
06/07/2018£6,214.59£3,430.06£2,784.53
06/08/2018£6,214.59£3,484.13£2,730.46 (45 days late)
06/09/2018£6,214.59£3,539.05£2,675.54375 days overdue
06/10/2018£6,214.59£3,594.83£2,619.76345 days overdue
06/11/2018£6,214.59£3,651.50£2,563.09314 days overdue
06/12/2018£6,214.59£3,709.06£2,505.53284 days overdue
06/01/2019£6,214.59£3,767.52£2,447.07253 days overdue
06/02/2019£6,214.59£3,826.91£2,387.68222 days overdue
06/03/2019£6,214.59£3,887.24£2,327.35194 days overdue
06/04/2019£6,214.59£3,948.51£2,266.08163 days overdue
06/05/2019£6,214.59£4,010.75£2,203.84133 days overdue
06/06/2019£6,214.59£4,073.97£2,140.62102 days overdue
06/07/2019£6,214.59£4,138.19£2,076.4072 days overdue
06/08/2019£6,214.59£4,203.42£2,011.1741 days overdue
06/09/2019£6,214.59£4,269.68£1,944.9110 days overdue
06/10/2019£6,214.59£4,336.98£1,877.61Not Due
06/11/2019£6,214.59£4,405.35£1,809.24Not Due
06/12/2019£6,214.59£4,474.79£1,739.80Not Due
06/01/2020£6,214.59£4,545.32£1,669.27Not Due
06/02/2020£6,214.59£4,616.97£1,597.62Not Due
06/03/2020£6,214.59£4,689.75£1,524.84Not Due
06/04/2020£6,214.59£4,763.67£1,450.92Not Due
06/05/2020£6,214.59£4,838.76£1,375.83Not Due
06/06/2020£6,214.59£4,915.04£1,299.55Not Due
06/07/2020£6,214.59£4,992.51£1,222.08Not Due
06/08/2020£6,214.59£5,071.21£1,143.38Not Due
06/09/2020£6,214.59£5,151.15£1,063.44Not Due
06/10/2020£6,214.59£5,232.35£982.24Not Due
06/11/2020£6,214.59£5,314.82£899.77Not Due
06/12/2020£6,214.59£5,398.60£815.99Not Due
06/01/2021£6,214.59£5,483.70£730.89Not Due
06/02/2021£6,214.59£5,570.14£644.45Not Due
06/03/2021£6,214.59£5,657.94£556.65Not Due
06/04/2021£6,214.59£5,747.13£467.46Not Due
06/05/2021£6,214.59£5,837.72£376.87Not Due
06/06/2021£6,214.59£5,929.74£284.85Not Due
06/07/2021£6,214.59£6,023.21£191.38Not Due
06/08/2021£6,214.59£6,118.15£96.44Not Due
Total:£239,999.99£132,875.41