Key Facts:
- Client: Multi-national Corporate Tech Company
- Loan: £multi-million
- Facility Type: (1) Term loan facility (2) Revolving Credit Facility
Using capital to take advantage of opportunities or scale a business often means that a company will need to access additional liquidity to fund its day-to-day operations. A working capital facility can support this, allowing a company to capture opportunities immediately, rather than budgeting for several months or raising capital via other means like liquidating assets.
In this case, we were approached by an established tech company that is focussed on providing a bespoke/niche software platform to luxury/high-value property owners around the world. The business is experiencing sustained and substantial growth, due to their market-leading reputation. As aresult, they required a flexible and structured debt facility to enable them to capitalise upon the opportunities available to them. Their incumbent funder could not provide the level of debt they needed, so we arranged a bespoke corporate finance package that refinanced their existing debt onto a more attractive and cashflow-beneficial repayment profile, including a partial-interest only facility, in addition to a ‘warchest’ revolving credit facility that enabled them to continue to invest in their technology, capitalise upon new global contracts and make opportunistic acquisitions. The entire facility was leveraged on the ongoing cashflows of the business without the need for any tangible security/recourse.
Working capital loans are especially useful for growing businesses – especially in the current economy. Enness has a track record of delivering structured and significant working capital loans to established businesses from various industries, including for corporate clients that have unusual and complex working capital loan requirements, as we saw in this case.
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