Seeking £30K Private Loan – Established Creative Business, £500K Turnover

[FundingSearch]

Hi all,
I’m seeking a private loan of around £30,000 to support the production and growth of a small, long-established UK business in the creative sector. We’ve been trading for 15 years with turnover typically between £350K and £500K annually, run by one director with a freelance team.

Due to the nature of what we sell, our sales plummeted during the pandemic — and many of our clients, who actively sell the physical products we manufacture, were unable to operate during that period. As a result, the business suffered significantly for nearly two years, and we’re still catching up from the long-term impact. Margins are relatively lean, with high production and fulfilment costs.

During this time, we took on additional finance to stay afloat. One lender later went into insolvency, which unfortunately triggered a default on our company’s credit file. A second facility also defaulted, though that is now in structured repayment. One of the two will be cleared in the coming months.

Although sales have started picking up again and we’ve developed several promising new products, traditional lenders won’t consider us due to the defaults. A broker suggested I try here, as we still have stable cash flow and good prospects moving forward.

This loan would allow us to resolve a lag in production and meet demand for products that were under-produced due to limited cash. I’m happy to offer a personal guarantee and structure formal repayment terms over five years, with a strong return or other flexible terms depending on the lender.

We also have a number of business assets that could be used to secure the loan, and their value is well above the requested amount — happy to detail this further if needed.

Sorry it’s a bit cryptic about who/what we are, but for now I’m keeping things private as it’s a reasonably well-known company within a niche area of the music industry. Happy to discuss more privately and provide the full picture to anyone genuinely interested.

Thanks for reading.

 

[ChrisCallaghan]

Hi @FundingSearch ,

Welcome to UKBF!

There are several members here he may be able to assist you. If none come forward, please feel free to DM me - I'd be happy to assess your needs and introduce you to a broker.

 

[DontAsk]

During this time, we took on additional finance to stay afloat. One lender later went into insolvency, which unfortunately triggered a default on our company’s credit file.

Why would a lenders insolvency result in adverse data on the borrower's credit file?

A second facility also defaulted,

Do you mean YOU defaulted? Are you sure that isn't the reason for the problem with your credit file?

 

[Mark T Jones]

The nature of the assets available as security will be a significant factor in the type / size of facility on offer.

If we're talking b & m, with a clear forward plan, then I may be able to help

 

[FundingSearch]

Why would a lenders insolvency result in adverse data on the borrower's credit file?


Do you mean YOU defaulted? Are you sure that isn't the reason for the problem with your credit file?

You're right — I didn’t explain that clearly enough.

During the pandemic, we restructured the loan to reduce the original monthly payments. However, since the lender has now gone into administration, an insolvency practitioner has taken control of the company. They’ve informed us that any borrower (like us) who previously restructured their terms is now considered to have "defaulted" on the original agreement.

As a result, they issued a default and served us with a final demand for the full outstanding amount — to be paid immediately. This happened a few months ago. Since we were unable to pay the full sum outright, we’ve since negotiated new repayment terms with them.

The insolvency practitioner is under time pressure to recover as much as possible quickly, so they’ve taken a very aggressive approach. Thankfully, I had a third-party company assisting me through the process, which helped us stabilise the situation.

 

[FundingSearch]

The nature of the assets available as security will be a significant factor in the type / size of facility on offer.

If we're talking b & m, with a clear forward plan, then I may be able to help

Thank you for the reply — I’d rather not post company-specific details or asset info here publicly as I’m new to the forum and the site is searchable.

Would you be open to a quick DM to discuss further? Happy to provide a full breakdown and forward plan privately.

 

[Mark T Jones]

Feel free to DM - I will give straight feedback either way.

 

[Lisa Thomas]

Feel free to dm me for a recommendation if you don't find someone on here.

 

[DontAsk]

You're right — I didn’t explain that clearly enough.

During the pandemic, we restructured the loan to reduce the original monthly payments. However, since the lender has now gone into administration, an insolvency practitioner has taken control of the company. They’ve informed us that any borrower (like us) who previously restructured their terms is now considered to have "defaulted" on the original agreement.

OK, but it still doesn't make any sense to me. Did the restructuring not result in a new agreement?

 

[FundingSearch]

OK, but it still doesn't make any sense to me. Did the restructuring not result in a new agreement?

No it was an addendum to the original agreement that they said they made at their discretion but the original terms were defaulted. Then, once a loan is marked as defaulted and moved to recoveries, lenders still accept payments but won’t reverse the default status. It stays in that state even with ongoing repayments — they treat it as a recovery case, not an active facility.

 

[PaulThompson]

Hi - also happy to have a chat and explore your options if you'd like to reach out?
We have a good history of finding funding where banks and other brokers fall short!
Take care
Paul - Acorn.finance

 

[FundingSearch]

Hi Paul,
Thanks for reaching out on the post.

My main issue is that I’ve already explored high street lenders, but due to the defaults currently on my file, they’ve made it clear they won’t consider me until those are resolved — which is why I’m now exploring P2P options through this forum.
If you do have contacts in that space who might be open to looking at my situation, I’d be grateful. I’ve included a summary of the plan below to give context — I believe I can support a well-structured loan and would be happy to provide more details privately.

I run a boutique niche music record label with a strong international profile. We specialise in short-run vinyl pressings (typically 300–500 units), which were heavily impacted during the pandemic — with retail stores closed, artists unable to tour, and several production schedules delayed or cancelled. Alongside physical sales, we also have a strong passive digital income stream (outlined below).

The funding would be used to increase vinyl production, which remains our highest-margin format (retailing between £25–£45 per unit). Many titles have only had CD and digital releases due to past cash flow constraints and the high upfront costs of pressing. Now that touring has fully resumed, artists are seeing strong sales at shows — but we’ve not had the liquidity to meet vinyl demand in time.

A typical run of 300 units costs between £1,400–£2,200 and can return £7,500+ in sales. With this funding, we would press several dozen vinyl jobs (both new and delayed) to unlock substantial revenue from our existing catalogue and upcoming titles.

I’m currently considering two loan amounts that I know are affordable based on our existing income and overheads:

• £30K loan
  – Repayment: ~£700/month
  – Term: 5 years
  – Total repayment: £42,000
  – Simple fixed return model (~8% per year equivalent)
• £40K loan
  – Repayment: £800–£900/month
  – Term: 5–6 years
  – Total repayment: £55K–£58K
  – Open to fixed return or standard interest structure

Assets available:
– ~45,400 physical units (CDs/LPs): cost value ~£150K, retail value ~£378K
– Studio equipment: ~£50K
– Digital catalogue of 220+ albums generating £4.5K–£10.5K/month in passive streaming income
– Catalogue valued conservatively at £270K (potentially £540K+ at standard industry multiples)

We also operate a professional-grade home studio space (not offered as security), which keeps our production costs and overheads low — no rent, no business rates.

I’m happy to offer a lien on the digital income as security.

also here is some more info:
we are a LTD company, with two registered defaults. I am certain, having tried all the usual small business LTD lenders, that there is no point in applying to them, hence me ont his forum looking for P2P lending.

To summarise:

• Security: The physical stock (CDs/LPs) would likely need to be sold through an established global distribution network to achieve full retail value. In a quicker sale scenario, returns might be lower, but there’s still inherent value in the inventory. The digital catalogue is highly active, and we own all the masters — I’ve previously had an offer to sell it at 10× annual turnover, so it holds strong ongoing value. We also have a range of high-quality studio gear, much of it vintage, with individual pieces valued up to £15K, which tends to retain good resale value.
• Past challenges: One default relates to a small loan (~£4K remaining), which is nearly cleared via £500 instalments; the lender has confirmed they’ll mark it satisfied once repaid. The second is with Just Cash Flow (c.£42K), now in administration. I’ve managed to stall personal enforcement of the PG through a third party and am in negotiations for a possible settlement — the administrator is keen to close all accounts by August 2025. Just to clarify, the loan I’m seeking now is not to resolve that situation.
• Current situation: The label is fully operational, releasing around two titles per month, with income from physical, digital, and streaming platforms. We also receive regular funding as a recognised Music Development Organisation through various national grant bodies. Several new projects this year are further helping to stabilise cash flow.
• Personal guarantees: I’m ideally looking for funding that’s not reliant on a PG, but rather secured against business assets. The situation with Just Cash Flow has made it clear that PGs are no longer a path I want to pursue. Happy to provide any additional info your contact may need.

 

[PaulThompson]

Hi Paul,
Thanks for reaching out on the post.

My main issue is that I’ve already explored high street lenders, but due to the defaults currently on my file, they’ve made it clear they won’t consider me until those are resolved — which is why I’m now exploring P2P options through this forum.
If you do have contacts in that space who might be open to looking at my situation, I’d be grateful. I’ve included a summary of the plan below to give context — I believe I can support a well-structured loan and would be happy to provide more details privately.

I run a boutique niche music record label with a strong international profile. We specialise in short-run vinyl pressings (typically 300–500 units), which were heavily impacted during the pandemic — with retail stores closed, artists unable to tour, and several production schedules delayed or cancelled. Alongside physical sales, we also have a strong passive digital income stream (outlined below).

The funding would be used to increase vinyl production, which remains our highest-margin format (retailing between £25–£45 per unit). Many titles have only had CD and digital releases due to past cash flow constraints and the high upfront costs of pressing. Now that touring has fully resumed, artists are seeing strong sales at shows — but we’ve not had the liquidity to meet vinyl demand in time.

A typical run of 300 units costs between £1,400–£2,200 and can return £7,500+ in sales. With this funding, we would press several dozen vinyl jobs (both new and delayed) to unlock substantial revenue from our existing catalogue and upcoming titles.

I’m currently considering two loan amounts that I know are affordable based on our existing income and overheads:

• £30K loan
  – Repayment: ~£700/month
  – Term: 5 years
  – Total repayment: £42,000
  – Simple fixed return model (~8% per year equivalent)
• £40K loan
  – Repayment: £800–£900/month
  – Term: 5–6 years
  – Total repayment: £55K–£58K
  – Open to fixed return or standard interest structure

Assets available:
– ~45,400 physical units (CDs/LPs): cost value ~£150K, retail value ~£378K
– Studio equipment: ~£50K
– Digital catalogue of 220+ albums generating £4.5K–£10.5K/month in passive streaming income
– Catalogue valued conservatively at £270K (potentially £540K+ at standard industry multiples)

We also operate a professional-grade home studio space (not offered as security), which keeps our production costs and overheads low — no rent, no business rates.

I’m happy to offer a lien on the digital income as security.

also here is some more info:
we are a LTD company, with two registered defaults. I am certain, having tried all the usual small business LTD lenders, that there is no point in applying to them, hence me ont his forum looking for P2P lending.

To summarise:

• Security: The physical stock (CDs/LPs) would likely need to be sold through an established global distribution network to achieve full retail value. In a quicker sale scenario, returns might be lower, but there’s still inherent value in the inventory. The digital catalogue is highly active, and we own all the masters — I’ve previously had an offer to sell it at 10× annual turnover, so it holds strong ongoing value. We also have a range of high-quality studio gear, much of it vintage, with individual pieces valued up to £15K, which tends to retain good resale value.
• Past challenges: One default relates to a small loan (~£4K remaining), which is nearly cleared via £500 instalments; the lender has confirmed they’ll mark it satisfied once repaid. The second is with Just Cash Flow (c.£42K), now in administration. I’ve managed to stall personal enforcement of the PG through a third party and am in negotiations for a possible settlement — the administrator is keen to close all accounts by August 2025. Just to clarify, the loan I’m seeking now is not to resolve that situation.
• Current situation: The label is fully operational, releasing around two titles per month, with income from physical, digital, and streaming platforms. We also receive regular funding as a recognised Music Development Organisation through various national grant bodies. Several new projects this year are further helping to stabilise cash flow.
• Personal guarantees: I’m ideally looking for funding that’s not reliant on a PG, but rather secured against business assets. The situation with Just Cash Flow has made it clear that PGs are no longer a path I want to pursue. Happy to provide any additional info your contact may need.

Hi
Thanks for getting back to me, I think you're probably right in your estimation, it might be possible to explore cash-flow funding if you have outstanding unpaid invoices.
As an aside, we can arrange PG insurance so that if a PG is called in 80% of it is covered by the insurer (subject to underwriting, of course)
Still happy to discuss funding options, just in case there's a stone you've not looked under!
Good luck

Paul

 

[FundingSearch]

Hi
Thanks for getting back to me, I think you're probably right in your estimation, it might be possible to explore cash-flow funding if you have outstanding unpaid invoices.
As an aside, we can arrange PG insurance so that if a PG is called in 80% of it is covered by the insurer (subject to underwriting, of course)
Still happy to discuss funding options, just in case there's a stone you've not looked under!
Good luck

Paul

 

[FundingSearch]

Thanks Paul, I agree. I guess I'm more or less looking for a private investor to work out a deal, not a bank/lender. Thanks.