Established over 100 years ago, this business started from a humble background of repairing motorcycle parts to become an internationally renowned precision engineering manufacturer. With a passion for precision, the business decided to modernise their operations by building a state-of-the-art factory next to their current factory on land that the company owned.
The business decided to partially fund the development by selling a portion of their land to a residential housing developer. Whilst using the remaining land for their new factory. The groundworks had commenced according to plan. However, when payment for the second phase of construction became due, the developers purchasing the land had to delay due to unforeseen circumstances.
This delay created a large working capital gap. As cash flow had been prepared with the understanding that the land purchase would complete to pay the contractors for the second phase.
The management had put in place an action plan to transfer business operations and new equipment across to the new factory to coincide with the finished development. Therefore, with the new equipment already ordered and demand for the business’ services increasing, a delay to the development was not an option and a fast working capital loan was needed imminently.
The client had enjoyed a long-standing relationship with their bank but due to the lengthier credit and due diligence process, were unable to provide the business with working capital funding in the required timescale.
With working capital funding needed urgently, the client contacted us through a commercial finance broker to see if we could provide the working capital funding needed within extremely tight timescales. Understanding the urgency for the client, credit backed terms were issued to our client in just 24 hours. The terms provided a clear and transparent solution that met the client’s cash flow requirements perfectly. We also offered to advance funds for longer than originally asked for to provide additional cash flow comfort in the event of any future issues with the development, whilst also offering flexibility around early repayment.
After agreeing on terms in just 24 hours, the funds were sent in less than a week which allowed our client to pay contractors on time to ensure there were no delays to the factory. This gave the client time to source longer term finance whilst still being able to complete the construction and transfer operations.