Raising Above £800k for Leisure Business to Meet Impending Tax Liability

21st February 2024

Jack Dowling

Jack Dowling

Jack Dowling

  • Client: Multi-location, leisure business 
  • Loan value: Above £800,000
  • Product: Merchant Cash Advance
  • Special condition: 48 hours to meet deadline 

In this case, Enness was approached by a fast-growing leisure business. Having been let down by a previous cash-flow funder and having outlaid already on significant capital expenditure commitments as part of their wider growth strategy throughout the previous year, this business found themselves in a position where they were short on immediate cash – facing both operational expenditure commitments and a hefty impending tax bill. 

With both expenditures ultimately necessary to keep the business open and a 48-hour window to raise a relatively substantial sum, Enness were engaged at essentially the 11th hour, tasked with finding a holistic solution that would enable the business to avoid entering into an arrangement with HMRC, which would ultimately limit their potential for future borrowing. 

Enness spotted an immediate and efficient solution, Merchant Cash Advance (MCA). This product provides an advance on revenues, split at the point of payment via card machine at a pre-agreed percentage. With no fixed term, MCA enables a truly flexible repayment structure - when business is slow, repayments are low – and when business is good, the business repays pay a bit more. With no fixed term for repayment and with the ability to move very quickly via an algorithmic, tech-led system that fully integrates with your business's cloud accounting software and bank accounts, Enness were able to generate a credit-backed offer within 24 hours. 

Enness' unprecedented market access and sector/product agnosticism afforded us the ability to take a wholly holistic approach, assessing the business comprehensively and identifying the most efficient means by which to raise the figure required in such a short timeframe. 

If you or your client's business requires quick cash to pay your impending tax obligations or, indeed, take advantage of a time-sensitive opportunity, get in touch to see how Enness will help.

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