Flying through challenges and adverse

The requirement

A company in the aviation industry was referred to Spark by an FX Partner via Spark Connect, seeking between £300,000 and £500,000 to invest in the development of their tech platform. Achieving the £500,000 was ideal to enable them to execute their plan completely.

‍

Challenges

The aviation sector is already considered high risk. The company had previously explored several lending options, all of which were declined due to adverse credit on one of the shareholder’s profiles.

Additionally, they had experienced significant drops in margin and revenue, and their tight cash flow occasionally exceeded overdraft limits. Furthermore, the business had multiple intercompany transactions and numerous bank accounts.

They were hesitant to continue exploring options in the market, fearing more declines. They were also concerned about the company’s reputation. Moreover, their personal guarantee lacked the strength to mitigate all the challenges.

‍

Outcome

Despite the business facing multiple declines before being referred to Spark, as well as all the challenges mentioned, Spark successfully secured a £500,000 unsecured loan offer. The business drew down the loan in two separate instalments of £250,000 each.

This funding has enabled them to kickstart their tech project and become innovation leaders in the jet charter industry.

Unsecured Loans

Unsecured loans are a type of loan that does not require the borrower to provide collateral, such as a house or car, to secure the debt. Instead, lenders base their decision on the borrower’s creditworthiness, income, financial history, and usually a personal guarantee.