The facility has been secured under the British Business Bank’s Coronavirus Business Interruption Loans Scheme (CBILS) from its bankers, Metro Bank.
The facility can be drawn down at any point before January 16, 2021 with a 12-month interest-free period following drawdown, after which an interest rate of 4.75% per annum over Metro Bank’s base rate on the drawn down amount will apply.
The funds are repayable commencing 12 months after the drawdown in equal monthly instalments for the remaining five years, with no early repayment penalty.
Norman Broadbent has also agreed on a new invoice financing facility with Metro Bank and a further £1,500,000 is now available under this facility in addition to the CBILS loan.
As of the end of October, the company had drawn down about £332,000 on its existing invoice financing debt facility, which will be replaced by the Metro Bank facility in February 2021.
“The new invoice discounting facility will greatly improve liquidity and help fuel further growth. In addition, with – it is said – only one in 10 applicants in our sector being approved for CBILS, our securing of this loan says much about the increasing strength of our business and how we are regarded,” said Mike Brennan, the chief executive officer of Norman Broadbent.
“These new funding arrangements are particularly important as we seek growth opportunities by way of M&A activity, strategic ‘tuck-ins’ with smaller businesses or teams, and organic growth,” he added.