A fast-growing direct-to-consumer Christmas textile brand needed funding to support stock purchases ahead of its busiest trading period.
The business was small, with a single director and no property to offer as security. That meant traditional bank lending was not readily available.
The business experiences significant seasonality, with stock and marketing spend required before the period when most of its sales are generated.
A $120,000 facility was needed to support that working-capital requirement ahead of peak trading.
An unsecured term loan, guaranteed by the director, gave the business the working capital it needed without requiring registered security.
The client also responded quickly throughout the assessment, providing signed financial statements, bank transaction data and commentary on gross profit margins. That helped Line Capital assess the application efficiently despite the business being at an early stage of growth.
The financial statements showed strong growth between FY25 and FY26. Revenue increased from $512,553 to $650,256, while gross profit rose from $252,488 to $469,527. Gross profit margin improved from 49.3% to 72.2%.
Reported EBITDA increased from $56,725 to $138,164, with EBITDA margin rising from 11.1% to 21.2%. For serviceability, bank-data adjusted EBITDA of $109,038 was used. Projected DSCR including the new facility was 1.44x, above the 1.10x policy threshold.
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