Product: Asset based lending
Facility size: £9,100,000
This well-established, specialist manufacturer secured an asset based lending facility with Close Brothers to raise higher levels of funding. Although the business was performing well, with an EBITDA of over £1 million in the preceding 12 months, changing market conditions alongside growth ambitions were behind the need for a more supportive finance partner.
Like many businesses, the company had been challenged by shortening supplier credit terms. Their existing financier did not provide sufficient headroom to remedy this. Close Brothers were able to help them generate more working capital through a confidential invoice discounting facility.
However, the business also wanted to invest in a new factory to diversify their revenue streams and increase finished goods stock holdings to meet demand. As a result, our alternative finance expert also suggested an additional cash flow loan secured against existing stock to reach a higher level of funding.
This manufacturer’s facility exemplifies how Close Brothers’ asset based lending can be more flexible than traditional overdrafts or loans, allowing access to greater funding as the expansion takes place. By releasing equity from unpaid customer invoices and in addition to other balance sheet assets, the business improved cash flow from day one and created headroom to support growth in the future.
The management team were pleased that Close Brothers took the time to understand their work and the pressures that they were facing. Through a series of face-to-face meetings, we were able to demonstrate the supportive, flexible, bespoke approach we provide to each of our clients, and find a solution that was right for them.