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loanLoan
Capital at risk
36
Months
16.5%
apr
Director
guaranteed
Capital at risk
Director guaranteed
Amount
£
You make
£
Minimum investment is £100
Total return
£
Monthly repayments
£

The Foot Factory is an online retailer dedicated to the sale of footwear. They stock major footwear brands such as Crocs, Skechers, and Vans. The Foot Factory is led by experienced directors with over 20 years’ combined retail management experience, and the business itself has been in operation for over a decade. They host their own website, as well as operating as a third party seller on platforms such as Amazon.

We provide quality footwear at affordable prices

At The Foot Factory, we believe that shoes are more than just a necessity; they are an expression of personal style, comfort, and confidence. Our vision is to become the go-to destination for every shoe lover, providing an unparalleled selection, exceptional quality, and a seamless shopping experience. The global footwear market is projected to reach over $400 billion by 2025, with a significant portion of sales shifting online. Consumers are increasingly seeking convenience, variety, and personalised shopping experiences. The Foot Factory is perfectly positioned to capitalise on these trends with our innovative approach and customer-centric model.

The Foot Factory began trading in 2012, making use of the retail management experience of both of our directors. Initially we traded largely as a third party seller on Amazon, though we’ve progressively diversified and currently have our own website from which we have much more control over the customer experience. We believe that the customer experience is paramount, and that all the best businesses should prioritise that. Our stock of shoes is tailored towards affordable brands that are trusted by customers, allowing us to become a trusted retailer both for footwear brands and our customers. This fuels growth and helps our business to continue to expand.

We are pleased to say that we saw a 74% increase in sales in the last 12 months, showing that our website is a great benefit to our growth, and confirming that the footwear retail industry is continuing to grow and taking the digitisation of western society in stride. Our user experience and custom website allow us to continue building a better business, and ensure that we’ll be trading in footwear for years to come.

Our current financial year ends on 31st July 2024 and our turnover is expected to hit £1.45m, with our EBITDA at £340k.

Credit commentary
The director Garth Wylie and Gareth Davis are providing a personal guarantee, which means should the business fail and have insufficient assets within the business to repay the loan, we can look to the guarantor(s) to repay any shortfall on repayment. Additionally, the business is offering a debenture to secure the repayment of the loan. There have been no CCJs for the business or director. The Equifax score and grade, which we use to assess risk, are based on the 2023 accounts.The provided financial statements show improved operational efficiency, with an 11.6% increase in turnover. The company’s Tangible Net Worth increased to £341k, providing substantial assets as collateral for a loan. Stock levels also increased, indicating strong inventory management. However, the company carries high financial risk with a Debt Service Coverage ratio of 0.5 and net gearing of 176%. Despite this, its strong asset base and stable cash flow provide mitigation for extending the loan facility.

Inflation Risk
The company has stated that they don’t expect inflation to have an effect on their business in the short term. They have already seen price increases in 2023, and in 2024, prices have held steady at 2023 levels across most of our suppliers.

X

Business keeps the raised amount even if target is not met.
Loan - product type
Maximum
£ 100k
Raised
£ 18k
Investors
73
Est close date
Funded 3 months ago in 29 days

Where will the funds go?

Refinancing of Loans
£100,000

Key people

Garth Wylie
Director and Operations Manager
GD
Gareth Davis
Director and Ecommerce Development Manager
Red cup

Investor rewards

Footloyal

If you invest £100+
you get 20% discount off all items

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Business brand

Lisburn, UK

"We provide quality footwear at affordable prices"

Incorporated
13 years, 4 months
Credit risk indicator

Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.