A Smarter Funding Solution For A Growing Dental Practice

The Client 

Our client owned a successful dental practice and had accumulated £550,000 of unsecured business debt, primarily used to fund specialist dental equipment. While the investment had supported the growth of the practice, the unsecured borrowing resulted in monthly repayments of over £16,000. 

The Challenge 

The client wanted to reduce their monthly commitments by consolidating the unsecured debt into a more cost-effective funding solution. However, the latest filed accounts did not meet the lender's required EBITDA cover, meaning a conventional application was unlikely to succeed. 

The Solution 

We worked with Barclays to secure a business loan that consolidated the existing unsecured borrowing. As the finance had been used to purchase business equipment, we structured the loan over a shorter term that aligned with the purpose of the borrowing. Rather than relying solely on the filed accounts, we presented up-to-date management accounts, which demonstrated stronger trading performance and comfortably met the lender's debt service requirements. 

The Outcome 

The client successfully refinanced £550,000 of unsecured debt into an 8-year Barclays business loan at 2.00% over Base Rate. Monthly repayments reduced from over £16,000 to around £6,000, improving cash flow by more than £10,000 per month and providing a sustainable funding structure to support the continued growth of the business. 

Lender: Barclays Bank 

Loan Amount: £550,000 

Interest Rate: 5.75% (Variable)  

Loan Term: 8 Years 

Please note: This case study is based on a genuine client scenario. To protect client confidentiality, specific figures, dates and other identifying details have been amended. The circumstances, solution and overall outcome remain accurate.