Asset based lending supports European expansion
Industry: Retail
Product: Invoice discounting with RLS top up and cashflow loan
Facility size: £13m
The challenge
This company manufactures and sells household cleaning products through major UK retailers such as Aldi, Asda and Home Bargains.
They have carved a niche in their sector, using the social media ‘cleaning influencer’ phenomenon to create trend-based product lines with limited releases.
The unprecedented growth and popularity of the products has opened up an entirely new opportunity to expand into Europe. In preparation, the business invested in additional property to store increased amounts of stock, resulting in pressure upon cash flow.
The solution
With their existing invoice finance provider unable to meet the growing requirements, the company required a specialist funding partner with experience in the retail sector. A key challenge to the European expansion plans was the fact that debtors would be based outside of UK jurisdiction. This makes the collection of payments more complex.
The team at Close Brothers Invoice Finance reviewed the business strategy and put systems in place to mitigate risks associated with oversees debtors. We provided a combined asset based lending facility with £10m invoice finance solution, £2m RLS cash flow loan and £1m cash flow loan.
The result
Working with the organisation to understand the short and long-term goals enabled a bespoke package to assist in their growth ambitions.
This additional capital provides headroom needed to continue to invest in new product ranges that will be popular for German, French and Spanish consumers. The business will be able to expand production lines, continuing to move quickly from social media to design to creation in order to fulfil demand for seasonal goods and support their journey as an agile and forward-thinking company.
