Industry: Food and Drink
Product: Asset Based Lending (ABL)
Facility size: £27m
The challenge
Following the acquisition of the business by a private equity firm, the new owners needed further working capital to implement their plans for growth. This included funding for new machinery for additional production lines to drive sales.
One of the primary challenges faced by businesses in the food and drink sector is the inherently risky nature of their supply chain, largely due to the products being perishable. Lenders often view this industry with caution, as the reliance on product freshness increases the likelihood of disruptions and financial instability.
This makes it particularly difficult to secure the necessary finance for expansion.
Furthermore, as a result of historical organic growth of the business, they were managing numerous sales ledgers resulting in complex administrative burdens, especially when chasing late payments.
The solution
Our team’s technical expertise and extensive experience in the sector meant that they recognised the challenges faced. By working closely with the leadership team to gain a detailed understanding of the operations and mitigations in place, they were able to secure the maximum possible funding outcome.
The result
We delivered a tailored, flexible £23M invoice finance package and a £5M cash flow loan, via our IDeal™ solution. The software works with the client’s existing accountancy platform and makes managing the facility seamless and releasing funds in real-time.
This gave the business additional flexibility to support its future growth plans, simplify its sales ledger processes and ease the challenges of collecting overdue invoices.
