“This deal was not straightforward – from our initial conversation, Momenta were proactive by engaging with the senior credit team at an early stage…” Jason Bailey, Director of DJB Business Finance
Momenta Finance Facilitates Smooth Business Transition with Flexible Unsecured Loan
When Jason Bailey, Director of DJB Business Finance, approached Momenta Finance with a complex business buyout scenario, it set the stage for an Unsecured Business Loan. This loan would showcase Momenta’s adaptability and commitment to finding tailored solutions for their clients SME Buyout.
The Challenge
The client was a business with two 50:50 shareholders, where one partner wished to buy out the other. The main challenge lay in structuring the finance in a way that would allow for a clean exit of one shareholder. This exit would not require their ongoing financial commitment. Many lenders in the market were unable to accommodate this requirement, insisting on personal guarantees (PGs) from both the exiting and remaining shareholders. The solution had to include an unsecured business loan specifically for the SME buyout.
Momenta Finance’s Solution
After careful consideration of the unique circumstances, Momenta Finance provided a tailored unsecured business loan with the following terms:
Loan Amount: £100,000
Term: 60 months
Product: Unsecured Business Loan
Flexible Underwriting Approach
Momenta Finance demonstrated their flexibility by agreeing to structure the loan with a personal guarantee from only the remaining shareholder. This approach set Momenta apart from other lenders who required guarantees from both parties. The unsecured business loan facilitated the SME buyout effectively.
The Outcome
Thanks to Momenta Finance’s flexible lending approach, the business successfully completed the buyout transaction. The remaining shareholder gained full control of the company without the complication of ongoing financial ties to the exiting partner. This clean break allowed for a smooth transition in ownership and management. It positioned the business for future growth under unified leadership. This success was possible due to the unsecured business loan SME buyout solution provided.
Testimonial
“This deal was not straightforward – from our initial conversation, Momenta were proactive by engaging with the senior credit team at an early stage. Once we had a positive outcome they really helped us through the credit, documentation and payout process, keeping DJB updated. I always say the service we give our customers is only as good as the service we get from our lending partners.”
– Jason Bailey, Director of DJB Business Finance
Conclusion
This case study demonstrates Momenta Finance’s ability to provide innovative financial solutions in challenging scenarios. By offering a flexible unsecured loan and adapting their underwriting criteria, Momenta enabled a smooth business transition. This might have been impossible with more rigid lenders. Their role in the unsecured business loan SME buyout was pivotal to the deal’s success.
The success of this deal benefited the client and also strengthened the relationship between Momenta Finance and DJB Business Finance. It showcased the value of partnership in navigating complex financial transactions.
About DJB Business Finance
DJB Finance & Leasing Ltd was founded by Jason Bailey, who has 30 years of experience in the asset finance sector. As an independent and privately owned company, DJB offers access to a diverse panel of funders. This ensures tailored financial solutions for clients. The company provides knowledgeable and personalised service. They aim to build long-term relationships based on integrity and a deep understanding of clients’ businesses and funding needs. By offering asset finance solutions, DJB helps preserve traditional working capital facilities, enabling businesses to allocate resources for future growth effectively. This includes scenarios like securing an unsecured business loan for SME buyout transactions.
