£1.35M Hospitality Refinancing: Reducing Costs, Enabling Growth

The client faced a dual challenge:

• High-cost debt:
  The business had accumulated several loans at relatively expensive rates. This constrained cash flow, limiting the ability to reinvest profits into growth. The effective cost of capital was higher than the rate of return achievable through expansion - meaning business value was being eroded despite strong fundamentals.
• Expansion funding:
  The business sought to refurbish and fit out a newly acquired venue - formerly a bank. While the project had strong commercial potential, the upfront capital requirement was substantial. Funding this internally would have negatively impacted liquidity and operations.

FBX developed a comprehensive refinancing and funding strategy to address both needs concurrently:

• Debt consolidation: FBX consolidated multiple high-cost facilities into a single, more efficient facility.
• Tailored lender approach: Leveraging its wide lender panel and deep industry expertise, FBX approached multiple funding partners with bespoke proposals aligned to their lending criteria.
• Negotiation & structure: FBX negotiated improved terms with the preferred lender, including the removal of restrictive security requirements, ensuring the deal remained flexible and commercially advantageous.