The Milturn Precision Engineering loan worked really well for lenders and borrower alike
The borrowers' side of Money&Co.'s peer-to-peer lending (P2P) operation is all about providing liquidity that allows UK small and medium-sized enterprises (SMEs) to be flexible and creative in their business dealings.
The lending side of that self-same equation means that lenders to Milturn Precision Engineering, an East Midlands-based manufacturer, were getting an average gross yield of 8.3 per cent for a recent, successfully concluded piece of funding.
The Leicster Mercury newspaper reports it this way: "Milturn Precision Engineering, on Dodwells Bridge Industrial Estate in Hinckley, has been taken over by company director Ian Mustard.
He has bought out retiring business partner Brian Kemp after securing a £500,000 loan through new peer-to-peer lending network Money&Co.
The engineering business was established in 1997 and supplies high quality precision components to sectors including aviation, automotive, film, motorsport, printing and photography.
It has an annual turnover of £1.3 million and employs 16 people. It has built up a large client base across the UK including supplying components for award-winning Thurmaston lens manufacturer Cooke Optics.
Mr Mustard said the acquisition was largely about adding "consistency" to the business: "We sought advice from our accountants Stewart Fletcher & Barrett who completed a valuation of the business and also put us in touch with Ludgate Finance who are experts in raising alternative finance," he added.
Shelley Harvey, director at Stewart Fletcher & Barrett's Hinckley office, said: "It is important for companies to think about their retirement plans and to seek advice about how to implement the best exit strategy for both the company and the individual.
"After valuing the business, it was a case of raising an investment that would facilitate the company's plans and the deal secured through Money&Co was well-suited to meet the needs of the business going forward."
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