- Client: Central London-based equipment hire company
- Facility: Revolving Credit Facility and Loan
- Facility Amount: £2.2 million
- Purpose: Asset Finance Refinancing and Working Capital
Enness was approached by a central London-based equipment hire company seeking to refinance its existing asset finance on more favourable terms while also raising additional capital to support its ongoing working capital requirements.
The equipment hire sector can present challenges when arranging business finance, with some lenders taking a cautious approach to businesses operating in the sector. In this case, the challenge was compounded by the fact that the company’s owner had only recently acquired the business. This meant that prospective lenders needed to become comfortable with both the sector and the relatively recent change in ownership.
The client therefore required a lender that could take a broader view of the business, its underlying assets and its future funding requirements rather than relying solely on the length of the current owner's track record.
Enness reviewed the available options and approached lenders with an appetite for more complex business finance requirements. We successfully negotiated a financing package of £2.2 million, comprising a revolving credit facility alongside a loan supported by the Government Guarantee Scheme.
The structure allowed the company to refinance its existing asset finance while also providing additional liquidity for working capital. The revolving element gave the business greater flexibility around its ongoing funding requirements, while the term loan provided a separate source of finance within the overall package.
By restructuring the company's existing borrowing and introducing additional liquidity, the facility helped improve the business's financial flexibility and provided a stronger platform from which to manage its ongoing operations and pursue future growth.
This case demonstrates how corporate finance can be structured around businesses operating in specialist or more challenging sectors. Where traditional lenders may be cautious due to the nature of an industry, ownership changes or existing debt commitments, specialist lenders may be able to consider a broader range of factors when assessing a funding requirement.
Enness works with businesses seeking working capital finance, asset finance refinancing and other bespoke business funding solutions. By understanding the underlying business and its objectives, we can identify financing structures designed around the company's specific requirements.
If your business is looking to refinance existing borrowing or raise additional working capital, speak to a finance specialist to discuss your requirements.
Disclaimer:
This case study is for information and illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to lender criteria, underwriting, affordability and individual circumstances. Government-backed lending schemes are subject to their own eligibility criteria and terms.
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.
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