The Funding Requirement
The business required £500,000 of additional funding to support its next stage of growth. The capital was intended to provide additional working capital while giving the company sufficient flexibility to pursue new opportunities without placing unnecessary pressure on existing cash flow.
After reviewing the business, its financial position and the intended use of funds, it became clear that the structure of the facility would be just as important as the amount being raised.
Assessing the Options
A range of potential funding structures were considered based on the company’s trading history, existing commitments and future requirements. Rather than approaching the market with a predetermined product, the objective was to identify lenders and facilities that aligned with the wider needs of the business.
This allowed suitable options to be compared across factors including overall cost, repayment profile, flexibility and available funding capacity.
Structuring the Facility
Following discussions with suitable lenders, a £500,000 facility was structured to provide the business with the capital required while maintaining flexibility for its continued growth.
The funding proposal was presented with a clear explanation of the business, its financial performance, the purpose of the capital and the rationale behind the proposed structure.
The Outcome
The completed facility provided the business with additional capital to execute its growth plans while maintaining sufficient working capital for its ongoing operations.
By assessing the requirement before approaching the market, the business was able to consider a funding structure designed around its objectives rather than simply selecting an available lending product.
