Day 1 Unsecured Cashflow Loan to Newly Acquired Manufacturing Business
26th September 2023
Key Details:
- Client: Entrepreneur
- Reason for borrowing: Increase business profits to purchase the company
- 6-month interest-only period
Enness was recently approached by an entrepreneur who sought to acquire a manufacturing business in the UK as part of a broader buy-and-build strategy. The company had an excellent customer base and efficient infrastructure. However, the client had an aggressive growth strategy, including organisational structuring and multiple digital marketing campaigns. Additionally, there was an unsecured cash flow loan on day one of new ownership. The client sought to increase business profitability rapidly and purchased the company with their own capital.
The client required Enness to help them structure a working capital facility that would enable them to achieve the projected growth without any restrictions due to the lack of working capital.
However, a challenge was faced in terms of funding the initial capital outlay. On the first day of ownership, the facility would need to be drawn down, which presented a challenge regarding both underwriting and legal issues. This is due to the incoming ultimate-beneficial-owner (UBO) only being associated with the target business after the purchase had been completed.
Enness were able to leverage our experience and expertise in this sector to structure a creative solution with one of our specialist lenders.
Enness tailored the client's repayment profile to include a 6-month interest-only period, giving the clients the space necessary to execute their growth strategy before repaying any capital, ultimately boosting the business' growth potential. This immediately enabled the client to access the funds they needed, offering flexibility and immediate liquidity.
Regardless of why you want to access corporate finance, Enness corporate finance broker will find the best deal. At Enness Global, we take pride in being a trusted partner, offering innovative financing solutions that turn ideas into a well-executed reality.
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