- Client: International logistics business headquartered in Berkshire
- LTV: 80% average trade receivables
- Delivery Time: 3 weeks
Enness was approached by a Logistics Company headquartered in Berkshire in this case. The client was looking to take on larger contracts and had been offered the opportunity to provide logistic support for a world-famous sporting event. The client was keen to take on the contract, seeing the potential for significant onward business in a new and exciting space, but they didn't have the on-hand capital a project of this scale would require. Furthermore, with the beginning of the contract looming, the client needed to be in a position to be able to transact quickly with any new lender.
The client approached us seeking a simple term loan, which would have helped in providing a capital influx, but at the risk of either an aggressive short-term amortisation profile or long-term cashflow impact, damaging the business' growth potential. Recognising both the immediate requirement for capital and mid-to-long-term upscaling opportunity, Enness decided to explore alternatives to a term loan. Enness recognised various security options during the fact-find, including a significant trade receivables book. However, the client had previously explored traditional Invoice Financing, finding the process cumbersome and ultimately not right for their needs.
At Enness, we pride ourselves on being at the forefront of the market with unprecedented access to new and exciting tech-driven debt facilities. We, therefore, had access to a new product provided by a specialist lender designed for this specific situation. In discussions with the lender, they were keen to agree to a Revolving Credit Facility, with a limit of 80% trade receivables today, with the potential to scale with an increasing receivables book as to afford the business the capital it will continue to require as it grows. Moreover, the revolving nature of the facility would enable funds to be deployed as required and paid down when convenient, with interest being serviced in the interim.
This creative solution fundamentally provided the client with a platform from which they could feel confident to take on new contract work without feeling categorically restricted by their cash flow position. By taking a holistic view of the business's wider profile, Enness could leverage our market expertise to secure for the client a solution tailored to their specific situation.
If you or your clients are keen to explore how you may access debt as a means of growing your business, please reach out anytime.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
