SPARES DIRECT BELFAST LTD

WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES

Funds Raised

£32,640.00

Final AER

19.47%

Loan term

60 MONTHS

Auction Closed

2018-08-15

Micro Loan Opportunities
Buy Capital Seller's
Premium
Price Buyer's
Rate
BuyBack
£8.82 +10.00% £9.71 14.76%

About the Business

Company Name: SPARES DIRECT BELFAST LTD Company Number: NI638945
Business Type: WATER SUPPLY; SEWERAGE, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES Years Trading: 2-3 years
Business Location:

About the Risk

Risk rating

C

Default rate

13.30%

Bad debt rate

5.47%

About the Security

Security Offered:

Personal Guarantee - PG from Peter Cairns

Est. Equity: 0.00

All Assets Debenture - Fixed and floating charge over all assets of the business

Est. Equity: 30000.00

Corporate Guarantee - Corporate Guarantee from Peter's other companies

Est. Equity: 0.00

Risk Indicators Identified:

Low Security Coverage
The security offered on this loan is below desirable levels
Director/s has a poor personal credit history
A director/s have previous blemishes on their personal credit report
Below Average Personal Credit Scores
The directors' combined average personal credit scores are below the national average
Below Average Business Credit Rating
A 3rd party credit rating agency has indicated that this business is above average risk.

Important Files

Who are we?

Spares Direct Belfast Limited was formed in June 2016 by Peter Cairns. The business supplies spare parts for boilers, predominantly wholesale to plumbers and plumbers’ merchants with a small amount of direct customer retail sales. Peter is early 50s having spent his whole working life in the plumbing and heating field.

The business started in 2012 as a sole trader supplying local companies in Northern Ireland with spares. Expansion followed as a consequence of exhibiting at major trade shows with customers attracted from the rest of the UK and Europe on the back also of an increasing web presence from the company’s website, www.sparesdirect.co With volumes increasing and an objective to deliver next day, an outlet in the UK mainland is needed, thus the decision to open a site in Liverpool this year. We have established a small presence there already but need to relocate to larger premises.

Read more

Loan Offers

What is the loan for?

The business has recently expanded into a second site in Liverpool which has caused a cash drain with an attendant requirement for £20K of funding to properly structure the start up costs in England. The new location in Liverpool will result in approximately £13K of costs, specifically £3K for re racking, £8K to construct an office and trade counter, £2K for electrics and fit out. The balance will be used for additional stocking at both Belfast and Liverpool. An additional £10000 is also sought to clear an expensive Capify loan, being paid down at £70 per day A loan, therefore, of £30K plus fees is sought over a 5 year term.

Why consider investing?

Financial performance can be summarised as follows, the June 2018 produced by the client’s accountant to support this application:

Year 6/2017 6/2018 y/e MI
Sales £386k £1.04m
GP £106k £123k
GPM 27.5% 11.8%
NPBT £23k £15K
NCA (£12k) £55k
NW £18k £33k

The business has expanded away purely from supplying spare parts into also full units. This has driven top line up given higher ticket values, but, in a price sensitive market place, has clearly had an impact on margin given that, in some instances, margins may be sub 10%, particularly when selling into merchants.

Corporate objective going forward is to focus more on spares, however, given that far higher margins from established suppliers in Europe and Asia can be delivered. Having said that, the throughput of whole units has now reached a stage where the company can buy directly from manufacturers at reduced prices having now hit volume thresholds. This will allow the price point to remain unchanged, but see an uplift in margins i.e. the company has suffered through some short term pain in GPM for long term gain.

Margins should, therefore re establish themselves at 2016/7 levels during 2018/9.

Security

This loan will be secured by way of a Personal Guarantee from the director, a Debenture and a Corporate Guarantee.

A Personal Guarantee will be provided by Peter Cairns. Peter is not a homeowner and has no assets or liabilities.

A first priority debenture will be taken over the applicant company. This will create a fixed and floating charge over the assets of the business.

A corporate guarantee will also be provided by Peter's other two companies - SPARES DIRECT LIVERPOOL LTD (11189393) and SPARES DIRECT BELFAST LTD (NI638945).

DateAmountCapitalInterestReceived
19/09/2018£855.10£325.61£529.49
19/10/2018£855.10£330.89£524.21
19/11/2018£855.10£336.26£518.84
19/12/2018£855.10£341.71£513.39
19/01/2019£855.10£347.26£507.84
19/02/2019£855.10£352.89£502.21
19/03/2019£855.10£358.62£496.48
19/04/2019£855.10£364.43£490.67
19/05/2019£855.10£370.35£484.75
19/06/2019£855.10£376.35£478.75
19/07/2019£855.10£382.46£472.64
19/08/2019£855.10£388.66£466.440 days overdue
19/09/2019£855.10£394.97£460.13Not Due
19/10/2019£855.10£401.38£453.72Not Due
19/11/2019£855.10£407.89£447.21Not Due
19/12/2019£855.10£414.50£440.60Not Due
19/01/2020£855.10£421.23£433.87Not Due
19/02/2020£855.10£428.06£427.04Not Due
19/03/2020£855.10£435.00£420.10Not Due
19/04/2020£855.10£442.06£413.04Not Due
19/05/2020£855.10£449.23£405.87Not Due
19/06/2020£855.10£456.52£398.58Not Due
19/07/2020£855.10£463.93£391.17Not Due
19/08/2020£855.10£471.45£383.65Not Due
19/09/2020£855.10£479.10£376.00Not Due
19/10/2020£855.10£486.87£368.23Not Due
19/11/2020£855.10£494.77£360.33Not Due
19/12/2020£855.10£502.80£352.30Not Due
19/01/2021£855.10£510.95£344.15Not Due
19/02/2021£855.10£519.24£335.86Not Due
19/03/2021£855.10£527.66£327.44Not Due
19/04/2021£855.10£536.22£318.88Not Due
19/05/2021£855.10£544.92£310.18Not Due
19/06/2021£855.10£553.76£301.34Not Due
19/07/2021£855.10£562.75£292.35Not Due
19/08/2021£855.10£571.88£283.22Not Due
19/09/2021£855.10£581.15£273.95Not Due
19/10/2021£855.10£590.58£264.52Not Due
19/11/2021£855.10£600.16£254.94Not Due
19/12/2021£855.10£609.90£245.20Not Due
19/01/2022£855.10£619.79£235.31Not Due
19/02/2022£855.10£629.84£225.26Not Due
19/03/2022£855.10£640.06£215.04Not Due
19/04/2022£855.10£650.44£204.66Not Due
19/05/2022£855.10£661.00£194.10Not Due
19/06/2022£855.10£671.72£183.38Not Due
19/07/2022£855.10£682.62£172.48Not Due
19/08/2022£855.10£693.69£161.41Not Due
19/09/2022£855.10£704.94£150.16Not Due
19/10/2022£855.10£716.38£138.72Not Due
19/11/2022£855.10£728.00£127.10Not Due
19/12/2022£855.10£739.81£115.29Not Due
19/01/2023£855.10£751.81£103.29Not Due
19/02/2023£855.10£764.01£91.09Not Due
19/03/2023£855.10£776.40£78.70Not Due
19/04/2023£855.10£789.00£66.10Not Due
19/05/2023£855.10£801.79£53.31Not Due
19/06/2023£855.10£814.80£40.30Not Due
19/07/2023£855.10£828.02£27.08Not Due
19/08/2023£855.10£841.45£13.65Not Due
Total:£32,640.00£18,666.00