One of our favourite companies that we have worked with in the past when lending our business loans was for a company that was shipping adhesives for building companies and construction companies.
Often, these trade companies go through a lot of adhesive materials than they first plan. They use these materials while building an extension or going through a home renovation and there ends up being additional work or construction that needs to be completed that they are unaware of at the time.
Now, because there is a large market for adhesive materials and they can be imported into the United Kingdom for a very low price, this becomes a business model that is very helpful for the trades. Now, with Brexit incoming to the UK there is a lot of businesses that will be spending a larger amount on their adhesive materials, especially with the uncertainty that currently exists about the trade deals.
Now, these are all still just possibilities. There are no plans for Brexit currently that the public are aware of, and there is no way to tell the overall economic impact that Brexit will have on the average business or company. Having said this, it’s always better to plan for alternatives and if this company is able to still legally import these products for a much cheaper result, this is an open market.
This company had already begun importing these products into the United Kingdom and has already gathered contacts around all the cities in the United Kingdom that go through tonnes of adhesive materials monthly. So, it was a no brainer to fund this company and ensure that they are still able to prosper after Brexit has begun.
This investment is still a risk, but we are very eager to find out how it all pans out in the end.