Industry: Pharmaceutical wholesalers
Product: IDeal with Liquidity Plus and bad debt protection
Facility size: £1.35 million
Following the Brexit referendum, this medical supplier saw their profits fall due to difficult trading conditions and exchange rate fluctuations. While the business has since returned to profitability, their past performance meant that their financier was reluctant to increase their borrowing limit. They therefore decided to look for a new funding partner.
At Close Brothers, we are used to finding lending solutions in complex scenarios. We worked closely with the company to understand their pressures, their business plan and their growth forecasts. Our people orientated approach enabled us to structure a bespoke deal that could allow the company to thrive.
The business agreed a £1.25 million invoice discounting facility, plus a £100,000 Liquidity Plus loan. This combination of funding means that their access to working capital is not restricted and they have additional flexibility during periods of peak demand.
In addition, the business chose to add bad debt protection to their facility. Not only does this product offer a full credit management service and access to our dedicated credit team, it also provides peace of mind in the event that a pre-approved customer becomes insolvent and is unable to settle their invoices. Under such circumstances, we will handle the entire insolvency process.