£75k Working Capital Facility for UK Homeware Importer

The business needed additional working capital to take advantage of a time-sensitive opportunity to purchase discontinued homeware stock at a significant discount. Payment to the overseas supplier was required within two days, while the company's existing capital was already committed to stock and receivables.

The opportunity therefore created a short-term funding requirement. Without additional liquidity, the business risked missing the supplier's deadline and losing access to stock that could be purchased at a favourable commercial price.

The requirement was particularly relevant to the business's position as an established wholesale importer. Cash can remain tied up in inventory and outstanding customer payments while new purchasing opportunities arise, creating temporary gaps between expenditure and available funds.

For businesses facing similar requirements, working capital finance can provide funding for stock purchases, supplier payments and other short-term commercial needs, subject to lender criteria.

The stock opportunity was dependent on payment reaching the overseas supplier within two days. The business therefore needed a funding solution that could be assessed and completed within a particularly short timeframe.

The available stock was discontinued and being offered at a significant discount, meaning the commercial opportunity was linked directly to the supplier's payment deadline.

Speed was therefore an important part of the funding requirement, alongside the lender's assessment of the business, its trading history and its ability to repay the proposed facility.

Enness approached a specialist working capital lender able to assess the business based on its established trading history and the circumstances surrounding the proposed stock purchase.

The application focused on the company's existing operations, the nature of the stock opportunity and the short-term funding requirement created by the supplier's payment deadline.

A circa £75,000 working capital facility was subsequently arranged and funded within the required timeframe, allowing the business to complete the stock purchase without waiting for existing inventory and receivables to convert into cash.

The structure demonstrates why lender selection can be important when a business needs finance within a compressed timeframe. The appropriate funding route will depend on the business, purpose of the facility, cash flow position and individual lender criteria.

The completed facility enabled the business to meet the overseas supplier's payment deadline and secure the discontinued homeware stock before the opportunity passed.

The products were subsequently resold through the business's established sales channels. The funding therefore helped address a temporary timing gap between the company's available cash and its purchasing requirement.

The case demonstrates how working capital finance can support established importers and wholesalers when capital is temporarily tied up elsewhere in the business.

The wider role of specialist finance in supporting businesses with stock requirements is also reflected in British Business Bank data. Between April 2023 and March 2026, an inventory finance programme backed by the British Business Bank supported more than 1,000 smaller businesses through over £1.9 billion of lending.

British Business Bank source

Jack Dowling, Corporate Finance Associate at Enness, said:

The business didn't have a funding problem in the traditional sense; it had a timing problem. The opportunity only existed for 48 hours.

Working capital finance can provide short-term funding for operational or purchasing requirements where available cash is temporarily committed elsewhere. Depending on lender criteria, this can include stock purchases, supplier payments, seasonal requirements and temporary cash flow gaps.

Working capital finance can potentially be used to fund stock or inventory purchases, depending on the business and lender criteria. It may be relevant where a business needs to pay a supplier before revenue is received from existing stock or outstanding customer invoices.

Funding timescales vary according to the business, lender, facility and information available. In this completed case, the circa £75,000 facility was arranged within the required timeframe. This should not be considered a standard or guaranteed funding period, and other transactions may take longer.

Lenders may consider factors including the business's trading history, turnover, profitability, existing commitments, cash flow and ability to repay the facility. Requirements vary between lenders and depend on the purpose and structure of the proposed funding.