A Gateshead entrepreneur who is set to appear on a BBC property show has sealed a six-figure funding deal to help drive growth.
Dane Nicholson established Zebra Leisure Lease in 2015, specialising in snapping up homes at auctions across the region before refurbishing them to be rented. The business has grown significantly over the last eight years – and in recognition of Zebra Leisure Lease’s growing property empire, Mr Nicholson is set to feature this Spring on BBC One’s Homes under the Hammer, in which experts reveal tricks of the property auction trade.
The company, like other SMEs in the current climate, has found it challenging to secure short-term commercial finance within a tight timeframe through traditional high street banks and other lenders. And the fast-paced nature of property auction deals – and the need to complete purchases within 28 days – means the business needs an agile and responsive finance solution to meet cash flow pressures.
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Now Mr Nicholson – who operates a number of other businesses including window film and tint installation and motorhome hire – has tapped into a six-figure finance package provided by Reward Finance Group to expand his 33-strong residential and commercial property portfolio, primarily across South Tyneside.
Reward, which provides SMEs with business finance loans and asset based solutions between £50,000 and £5m, worked with Zebra Leisure Lease to identify its operational business challenges and opportunities to expand. As a result, the business aims to expand its property portfolio by 48% and double revenue in the next 12 months.
Expansion plans include diversifying into assisted living accommodation, to meet the shortage of housing schemes and suitable properties for vulnerable young adults across South Tyneside.
Mr Nicholson said: “As an SME business owner it can sometimes be difficult to access the finance and working capital needed to drive growth or capitalise on market opportunities in the North East, particularly within the fast-moving residential property sector. Our entire business model is built on identifying and purchasing properties at auction and then transforming them to let. Whether it’s completing the transaction within 28 days or then funding the refurbishment and build costs, both challenges put immense pressure on our cashflow situation and can naturally stunt the progress of my business.
“Finding a finance provider, that is both willing to lend and also offer the necessary speed and flexibility of loan facility, has provided a vital lifeline that is now powering my ambitions and future plans for the company.”
The funding deal was brokered between Reward and Zebra Leisure Lease by David Padget, who is managing director for Atlas Trade Finance based in Newcastle.
Harriet Gibbs, business development director for Reward Finance Group in Yorkshire and the North East added: “We’re increasingly meeting a range of SMEs like Zebra Leisure Lease that are simply unable to access commercial finance or find a tailored funding solution that will enable business growth. This is a big challenge facing the region’s economy and so we’re delighted to be able to buck the trend and work with entrepreneurs like Dane to provide common sense, agile lending that overcomes barriers and delivers working capital at speed.
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