food-processing-co_refinance_asset-based-lending

“Our back was completely against the wall – Clancy got us a fantastic offer of finance, which was a real game changer”.

FOOD PROCESSING COMPANY , TURNOVER €7M

The Problem: Business turnaround, looking to refinance.

This business had an Invoice Discounting facility of €1.5M from the bank. The business was restructuring, having experienced a decline in turnover, increased bad debts and higher costs during the downturn. The business had great potential and a strong pipeline. However, their bank wanted to exit and reduced the overall facility. This caused major cashflow pressure at a time when the company badly needed support.

Solution: We met the promoters and identified the funding the business needed We introduced a funder who was willing to support the business through the restructure. Working with the funder, we tailored an Asset Based Lending solution which included a high prepayment of 95% for six months. This helped the business with a short-term boost of cash needed for their peak season. The overpayment released an additional €500K cash from the debtors ledger, compared to their existing facility. The additional cash enabled them to keep their suppliers on-side, negotiate better pricing and manage the business more efficiently.