£55,000 Facility Arranged After Supplier Terms Changed
Working capital finance can help established businesses manage short-term cash flow requirements when costs need to be met earlier than expected. Enness Global works with businesses requiring additional liquidity for operational costs, supplier payments and committed expenditure, including situations where an unexpected change in payment terms creates an immediate funding requirement.
Working capital finance creates an additional repayment obligation for the business. Funding is subject to lender approval and may not be suitable for every business or circumstance.
Why Did The Hospitality Group Need Working Capital Finance?
The hospitality group was partway through a refurbishment programme when a key supplier changed its payment terms from 30-day credit to payment on delivery. Because the programme had been budgeted around the existing arrangement, the change created an unexpected short-term funding requirement.
Contractors had already been booked and project timelines agreed. Meeting the additional supplier costs from the group's existing cash reserves could have meant redirecting funds from elsewhere in the business or pressuring the refurbishment programme.
The underlying expenditure had not changed. What changed was when the business needed to pay for it.
This type of timing mismatch can create pressure even for established businesses with ongoing trading activity. In this case, the group needed additional liquidity to keep an existing project moving while adapting to the supplier's revised terms.
Payment timing remains an important consideration for UK businesses. Department for Business and Trade statistics published in July 2026 show that large UK businesses took an average of 32 days to pay suppliers in 2025, while 15 per cent of invoices were paid late.
How Did Enness Structure The Working Capital Facility?
Enness approached a lender able to assess the hospitality group's trading position alongside the specific and short-term nature of the funding requirement. A circa £55,000 facility was structured to address the immediate liquidity gap created by the supplier's change in payment terms.
The requirement was relatively straightforward in purpose but time-sensitive in practice. The group needed sufficient liquidity to continue meeting supplier costs without interrupting an already committed refurbishment programme.
Rather than treating the requirement as long-term borrowing, the funding was structured around the immediate working capital need and the wider financial position of the business.
Businesses facing similar short-term liquidity requirements can explore Enness's wider business finance solutions, with the appropriate structure depending on the purpose of the borrowing, the financial position of the business and lender criteria.
Any finance remains subject to status and lender approval.
What Was The Outcome For The Hospitality Group?
The circa £55,000 facility was arranged within 72 hours, covering the shortfall created by the supplier's change in payment terms and allowing the group's refurbishment programme to continue according to its existing schedule.
The completed facility meant the business did not need to pause committed works solely because an existing supplier arrangement had unexpectedly changed.
The case also demonstrates that working capital requirements do not always arise from expansion or a new commercial opportunity. For established businesses, a change to an existing supplier arrangement can be enough to create a temporary funding gap.
For another example of short-term liquidity being used to maintain business activity, see Enness's related working capital case studies.
Corporate Finance Associate Jack Dowling noted that situations like this can require a funding solution capable of responding quickly when an unexpected change affects a business's cash flow. In this case, the speed at which the facility was arranged was an important part of allowing the refurbishment programme to continue.
What Were The Risks And What Could Have Gone Differently?
The facility remained subject to lender assessment, approval and completion. Another lender could have taken a different view of the hospitality group's trading position, existing commitments or ability to service additional borrowing.
Timing was particularly important because the refurbishment programme was already underway. Had funding not been available within the required timeframe, the group may have needed to use other cash reserves, renegotiate payment terms with suppliers or contractors, or alter the refurbishment schedule.
Additional borrowing also creates repayment obligations and financing costs. The suitability of any working capital facility depends on factors including the business's cash flow, existing commitments, trading performance and ability to service the borrowing.
The successful completion of this transaction does not mean the same funding amount, terms or 72-hour timeframe will be available to another business. Finance is subject to status and lender criteria.
Important Information
This case study describes a specific completed transaction and is provided for market and illustrative purposes only. Individual circumstances differ, and the availability, amount, cost and terms of business finance will depend on the applicant, lender criteria and proposed transaction.
Finance is subject to status and lender approval. Past transactions are not indicative of future availability or outcomes.
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Let's talk nowWhat Is Working Capital Finance?
Working capital finance provides businesses with additional liquidity to meet short-term operational requirements. Depending on the circumstances, it may be used for supplier payments, payroll, stock, contract mobilisation or other expenditure.
