Close Brothers Invoice Finance supports strategic acquisition
Industry: Construction
Product: IDeal™ with Government Loan Scheme
Facility size: £850,000
The client
Established in 2021, this business operates in the UK construction industry and offers a wide range of concrete pouring services, including footings, slabs, retaining walls, ICF walls, and liquid screed floors. They support projects of all sizes, from small garden shed bases to large industrial units.
The company has invested in longstanding relationships with both their customers and suppliers in the local area, building a excellent reputation for reliable service.
The challenge
The management team has substantial growth ambitions and when an opportunity arose to acquire two firms operating in the same sector, they were keen to pursue it. The organisational synergy provided an opportunity to allow a rapid expansion of service and product offering.
The client required an increase in working capital to help purchase the businesses, while maintaining stable cash flow levels allowing a smooth transition of ownership.
Seasonal fluctuations and variations in income levels synonymous to the construction sector, can present challenges to funding strategic business plans inhouse, or finding a partner willing to offer finance at the level required.
The solution
Teams from across Close Brothers Invoice and Asset Finance took a coordinated approach to tailor a solution that would fund the acquisition fully, with cash flow available after the transaction.
Close Brothers Invoice Finance developed a package of £850,000 using our IDeal™ solution with a term loan and top up through the Recovery Loan Scheme, now replaced by the Growth Guarantee Scheme. Designed to support access to finance for UK small businesses, government backed loan options give additional headroom for borrowers that can support investment and expansion.
Close Brothers Asset Finance, with its expertise in supporting clients in the construction industry, provided a refinancing of concrete pouring vehicles within the existing company.
The result
By using the expertise available at Close Brothers in both asset and invoice finance, this bespoke combination has provided the funding needed for acquisition and secured essential ongoing cash flow for future growth.
Close Brothers’ unique and collaborative approach ensured the firm’s ambitious expansion plans could proceed and has supported their development of services in a competitive industry.
