Business Finance: Working Capital

SpecialismsBusiness Finance: Working Capital

We recognise that senior debt options may not always be possible for certain businesses due to prevailing market conditions or bank appetite/criteria, so pursuing working capital solutions can provide a great solution to assist businesses in getting the funding they require.

We will advise on what is right for your business at all times. Common options include:

Invoice Discounting

This is when you sell unpaid invoices to a lender and they give you a cash advance that is a percentage of the invoice’s value.

Asset-based Funding

Asset-based finance is a loan made to a company that is secured with one of the company’s assets, such as equipment, machinery, or inventory. This kind of funding can be very useful to businesses that need expensive, capital-heavy assets to help generate additional income.

Working Capital Facilities

There are specialist providers giving working capital to businesses that require generic working capital support (for a broad range of uses) as opposed to one specific or tailored use. This tends to be more expensive, but, when utilised correctly, is very effective in facilitating growth before refinancing to lower cost solutions once the benefits of the working capital loan have been derived.

Business Finance: Working Capital case study


Case Study: Invoice Discounting Sector: Manufacturing
Size: £1.7m

We worked with our client to establish an Invoice Discounting (ID) line. The client deals with large international clients that have large invoice values but can be slow payers. The ID line was the correct solution to assist the business with continued access to cash for day-to-day operational activities.

Case Study: Asset Based FundingSector: Engineering
Size: £750k

We worked with a new start up client to establish an asset funding line to buy a fleet of vehicles. This company had an excellent pipeline of business but limited trading history that precluded them from some funders. We developed a package with a bespoke lender to get the company the assets they need to serve their pipeline.

Case Study: Working Capital FacilitiesSector: Engineering
Size: £1.5m

We worked with a client to get a working capital solution in place. They had a profitable business and were successful in bidding for tenders to expand their business. Expanding into new territories was expensive and required an almost vertical lift-off that would require significant funding to deliver. We acquired this funding to help deliver the profitable new project.