SECONDHANDRACKING .COM LIMITED

4534 Other building installation

Funds Requested

£45,000.00

Offered so far

£0.00

Loan term

48 MONTHS

Auction Closed

2016-05-04

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About the Business

Company Name: SECONDHANDRACKING .COM LIMITED Company Number: 07126744
Business Type: 4534 Other building installation Years Trading: 3-5 years
Business Location: Morley

About the Risk

Risk rating

B

Default rate

7.10%

Bad debt rate

5.84%

About the Security

Security Offered:

1st Charge Residential Property

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Visit our Website

Background

Secondhandracking.com Ltd is a sister company of Stamina Handling Ltd the two companies are separate legal entities with a common ownership with slight variations. Stamina Handling took out a loan from Rebuildingsociety.com in August 2014 this will be repaid in August 2016. You can view this loan and its repayment record here. Stamina Handling does new warehouse racking and associated products secondhandracking.com does the same but with used equipment but also offers new equipment.

A loan is required to purchase good quality used equipment as it becomes available. The loan will be secured against the stock that is purchased. There will also be a personal guarantee. However we feel the loan is very secure because:

1) The assets of secondhandracking are fairly substantial current assets circa £420k and should cover any problems. The stock holding will increase due to the purchase of stock with this loan.

2) The stock as it is predominantly used equipment is written down and a figure close to the book value should be achievable in the event of a fire sale.

Sales history

Since the company was split off from Stamina handling the sales have been as follows:

2014 £360k

2015 £752k

2016 £1006k

The above figures show invoices sales what is more poignant is the order intake growth which can be shown by the attached graph.

Traditionally there is a spike in sales in the spring and smaller spike in the autumn. If we look at the first quarter of this year compared to the corresponding period last year we will see a 50% increase and at the time of writing this there are two weeks of the quarter left. The signs are that the sales growth will continue and this growth will need to increased stock holdings.

The Sales Message

Traditionally used racking has been a cheap low quality option with most suppliers taking a “buyer beware” approach and in general offering, in our opinion poor quality. If we use the analogy of the car trade most dealers are Arthur Daleys while we are attempting to offer a main dealer service. Our emphasis is on making our customers save money in the long run by actively promoting quality rack protection and maintenance.

We also have new initiatives planned that we believe will increase our sales.

Read more

Loan Offers

What is the loan for?

The loan is to purchase used racking and shelving equipment.

Why consider investing?

The plans for growth

One of the barriers to growth is the quality of staff in particular the installation staff. Control of quality at a distance is a problem. The whole industry uses sub contract installation teams as a norm but this has quality and control issues. We have a dual strategy of employing and training installation staff close to the companies warehouse base and to franchise the installation work to franchisees. We have currently two franchisees currently being trained from Scotland and South Wales.

Security

The Loan is to be secured by way of 2 Director Guarantees.

The Directors have a Combined Est Net Worth of £187,366.

Mr Gobi's estimated net worth £104766; Personal Dwelling Est Value £450k, Est Equity £222k; Property 1 Est Value £170k, Est Equity £36k; Property 2 Est Value £140k, Est Equity £50k.

Mr Williams' Estimated Net Worth £82600; Personal Dwelling Est Value £245k, Est Equity £95k

DateAmountCapitalInterestReceived
05/06/2016£1,283.39£670.27£613.12
05/07/2016£1,283.39£679.40£603.99 (7 days late)
05/08/2016£1,283.39£688.66£594.73
05/09/2016£1,283.39£698.04£585.35
05/10/2016£1,283.39£707.55£575.84
05/11/2016£717.19£717.19£0.00
05/12/2016£726.96£726.96£0.00
05/01/2017£736.87£736.87£0.00
05/02/2017£746.91£746.91£0.00
05/03/2017£757.08£757.08£0.00
05/04/2017£767.40£767.40£0.00
05/05/2017£777.86£777.86£0.00
05/06/2017£788.45£788.45£0.00
05/07/2017£799.20£799.20£0.00
05/08/2017£810.09£810.09£0.00
05/09/2017£821.12£821.12£0.00
05/10/2017£832.31£832.31£0.00
05/11/2017£843.65£843.65£0.00
05/12/2017£855.15£855.15£0.00
05/01/2018£866.80£866.80£0.00
05/02/2018£878.61£878.61£0.00
05/03/2018£890.58£890.58£0.00
05/04/2018£902.71£902.71£0.00
05/05/2018£915.01£915.01£0.00
05/06/2018£927.48£927.48£0.00
05/07/2018£940.12£940.12£0.00
05/08/2018£952.93£952.93£0.00
05/09/2018£965.91£965.91£0.00
05/10/2018£979.07£979.07£0.00
05/11/2018£992.41£992.41£0.00
05/12/2018£1,005.93£1,005.93£0.00
05/01/2019£1,019.64£1,019.64£0.00
05/02/2019£1,033.53£1,033.53£0.00
05/03/2019£1,047.61£1,047.61£0.00
05/04/2019£1,061.88£1,061.88£0.00
05/05/2019£1,076.35£1,076.35£0.00
05/06/2019£1,091.02£1,091.02£0.00
05/07/2019£1,105.88£1,105.88£0.00
05/08/2019£1,120.95£1,120.95£0.00
05/09/2019£1,136.22£1,136.22£0.00
05/10/2019£1,151.71£1,151.71£0.00
05/11/2019£1,167.40£1,167.40£0.00
05/12/2019£1,183.30£1,183.30£0.00
05/01/2020£1,199.43£1,199.43£0.00
05/02/2020£1,215.77£1,215.77£0.00
05/03/2020£1,232.33£1,232.33£0.00
05/04/2020£1,249.12£1,249.12£0.00
05/05/2020£1,266.14£1,266.14£0.00
Total:£45,000.00£2,973.03