- Approximately £200,000 facility
- Completed within 48 hours
- Receivables-backed working capital solution
When an unexpected financial obligation arose, a UK-based education and recruitment consultancy had just days to secure additional working capital. The business had an established trading history, a strong pipeline of future placements and reliable institutional counterparties, but like many growing companies, much of its available capital was tied up in outstanding invoices and normal operating cycles.
Although the underlying business was performing well, conventional funding was unlikely to arrive quickly enough. Payroll commitments, outstanding receivables and seasonal cash flow meant liquidity was temporarily constrained, while traditional lenders indicated that underwriting would take several weeks. The directors needed a solution that could be implemented immediately without diluting equity or committing the business to unnecessary long-term borrowing.
Rather than focusing solely on historic financial statements, Enness reviewed the company's aged debtor book, contracted income pipeline and cash conversion history to present a more current picture of the business. This enabled the case to be introduced to a specialist lender whose underwriting centred on the quality of the company's receivables and ongoing trading performance.
A receivables-backed working capital facility of approximately £200,000 was arranged, secured by a debenture and completed within 48 hours of approval. The streamlined process required only limited documentation, allowing funding to be released within the client's required timeframe.
By accessing liquidity at speed, the business was able to settle its immediate financial obligation without disrupting day-to-day operations. Payroll commitments were met, supplier relationships remained intact and management could continue focusing on growth rather than short-term cash flow pressures.
Disclaimer
This case study is provided for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Enness Global acts as a broker and not as a lender. All lending is subject to status, underwriting, valuation and lender approval. Loan terms, pricing and facility structures vary depending on individual circumstances, asset profile and market conditions. Outcomes are not indicative of future results. Independent professional advice should be sought before entering into any financial arrangement.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
