£2m invoice finance facility supports growth for specialist agricultural group
Industry: Agriculture
Product: Invoice discounting and GGS
Facility size: £2m
The client
Our client is a specialist agricultural products group supplying customers across the UK and overseas.
Operating through several businesses, the group provides products for a range of agricultural and industrial applications, including silage protection, crop and animal nutrition. Its focus is helping customers improve performance, protect product quality and reduce waste.
With an international customer base and demand influenced by seasonal agricultural cycles, the group needed a funder that could understand both its day-to-day trading requirements and longer-term plans.
The challenge
The group wanted to refinance existing lending arrangements and release additional working capital to support its next stage of growth, but its existing facility no longer provided the flexibility or funding level required.
They wanted to repay an existing overdraft and simplify borrowing to create a structure better suited to the wider group’s needs. The transaction was complex, involving multiple businesses within the group, seasonal trading patterns, and customers in both the UK and overseas. As a result, the new arrangement needed to reflect how the businesses operated together, while providing enough headroom to manage changing working capital requirements throughout the year.
The solution
The Close Brothers Invoice Finance team structured a £1.75 million invoice finance facility, which refinanced the client’s existing arrangement and increased the available working capital.
By unlocking the value of unpaid invoices, invoice finance provides the group with funding that flexes with sales: as invoices increase, so does the facility. Seasonal peaks can be managed without renegotiation, unlike a traditional overdraft.
Close Brothers also supplied a £250,000 Growth Guarantee Scheme term loan, enabling the client to repay its existing overdraft and further simplify its borrowing.
The result
By addressing the group’s immediate refinancing needs and increasing available liquidity, the £2 million Close Brothers funding package has created a stronger platform for future growth.
With funding that better reflects the scale and structure of its operations, the business is now well placed to manage seasonal demand, support customers across the UK and overseas, and pursue its long-term ambitions with confidence.
