April - Deal of the Month
Market Sector: Food wholesale
Sales turnover: £1m projected
Funding Line: £150,000
Requirement: Provide working capital funds for new start business.
We have recently provided finance facilities for a new start business providing tasty Italian goodies to the London restaurant trade. We were in fierce competition but won the deal with flexibility in terms of spread clauses, minimum fees and guarantees.
Market Sector: Recruitment – IT Sector
Sales turnover: £2m
Funding Line: £200,000
Requirement: Take out old business in administration from competitor. Fund Newco with Invoice Discounting facility.
We were asked to assist a recruitment business that had suffered after losing a major customer. With high fixed overheads they realised that they could not continue and took the business into administration. They set up again with pared down staff and cheaper premises. We agreed to fund the old company via the take out of another Invoice Finance company. We also funded the new company ongoing. The surprising bit is that we funded both via a Confidential Invoice Discounting facility rather than full factoring.
Market Sector: Car Bodyshop
Sales turnover: £750k
Funding Line: £100,000
Requirement: Selective Invoice Finance.
This northern-based car bodyshop liked the idea of selectivity - they choose the invoices to factor - and fixed fees - we only charge interest on the funds outstanding - no service charges.