- 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 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 assess both the sector and the relatively recent change in ownership.
The client therefore required a lender that could consider the wider position of the business, its underlying assets and its 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. A financing package of £2.2 million was sourced, 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 provided flexibility around 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 provided the business with a different funding structure for managing its ongoing working capital requirements.
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 based on 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.
GOVERNMENT-BACKED LENDING SCHEMES ARE SUBJECT TO ELIGIBILITY CRITERIA, LENDER REQUIREMENTS AND APPLICABLE TERMS. FINANCE IS SUBJECT TO UNDERWRITING, LENDER CRITERIA AND INDIVIDUAL BUSINESS CIRCUMSTANCES.
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