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Industry: Distribution

Product: Confidential invoice discounting and stock facility

Facility size: £1.4 million

The client specialises in the distribution of DIY and car care products and has experienced strong year-on-year growth for six years. After one of its top customers went into administration, the business suddenly experienced a cash flow challenge following many years of successful trading.

Following the loss of its client, the company’s financier was no longer willing to provide funding in its current guise due to the set-up becoming “non-standard”. Changes made to the facility by the lender were having a negative impact on the performance of the business and so the client approached Close Brothers Invoice Finance, knowing we specialise in creating bespoke solutions that are tailored to each individual business.

Seeing the potential of the business, Close Brothers offered a £1.4 million asset based lending (ABL) deal, comprising an invoice discounting and stock facility. The client also opted to use bad debt protection to ensure they would still receive payment in the event that a customer couldn’t settle their invoices. Whilst allowing the company to refinance away from the incumbent lender, the ABL facility has allowed additional headroom for the business to trade over the next 12 months while it works to restore turnover.

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Close Brothers Invoice Finance
Ridgeland House
165 Dyke Road, Hove
East Sussex, BN3 1UY

T: 0127 305 9530 *

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