How a management buyout went from dreaded to done, without the paperwork

Stephen Murray has spent decades turning around struggling automotive companies. 

Now Managing Director of ECF Accident Repair Group, he's seen every kind of business financing; bank loans, private equity, invoice factoring... and the pain that comes with each.

So when he needed funds to complete his management buyout of ECF, he wasn't looking forward to it.

"In the past, I spent thousands with accountants to put business plans, cash flow forecasts and everything else in place." – Stephen Murray, Managing Director, ECF Accident Repair Group

Then his broker introduced him to iwoca.

iwoca cut through what private equity couldn't

"The iwoca deal was quick and no stress," Stephen recalls.

What stood out was how little friction there was for a £500k loan. While most lenders demand extensive documentation and business plans for that kind of sum, iwoca required significantly less paperwork: "I was astonished, because I thought it was going to take a lot longer. iwoca is the best kept secret there is."

"It was so simple compared to the hoops I've had to jump through with private equity in the past."

A structured loan beats invoice factoring

Invoice factoring is a common choice in the automotive industry; immediate cash flow, no waiting on 90-day payment terms. But Stephen has seen it go wrong.

"I think lending money rather than factoring is a much better way. A debt loan against the business is more controllable in my experience."

He's seen auto businesses that rely on factoring struggle to maintain healthy accounts by year end. They end up essentially working for the bank. A structured five-year loan, in his experience, allows for stronger growth and cash flow management.

Control and a human on the other end

For Stephen, iwoca offered both: a clear, manageable loan and a service that felt personal.

"The chap that manages my iwoca account is just a normal guy. I can ring him up and have a conversation. There's no pressure sale there."

Unlike traditional loan managers who often upsell aggressively, Stephen found an environment that felt comfortable and secure. The kind of relationship where he could pick up the phone without bracing himself.

"You really don't know how stressful this process is going to be until you start. But with iwoca, it's so simple."

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