As a business, you can use a working capital facility to scale your company and take advantage of opportunities in your marketplace. You need to deploy the proceeds of a working capital loan to pay for the operations of your business rather than to buy long-term assets or make investments.
In this case, an established retail and wholesale client that operates in the apparel sector asked us to help them arrange a working capital loan. To date, the business has been funded exclusively through shareholder capital. They wanted the facility to fuel growth opportunities as they had recently won a series of lucrative contracts from new clients. The working capital loan would allow the business to ensure that they could meet their commitments and fully capitalise on the short-term opportunity the contracts presented, as well as establish longer-term, recurring working relationships and win additional revenue off the back of a successful fulfilment of the initial contracts.
The business had both UK and overseas entities within its group, and acquires stock from multiple overseas jurisdictions, in turn supplying to clients both in the UK and Europe. As such, there were several complexities to take into account to ensure that the finance package met both their immediate working capital requirements, but also provided a flexible facility to support continued growth and future capital requirements in line with their forecasts.
Enness has access to all the working finance capital lenders that operate in the mid-cap space, allowing us to go straight to the most competitive sources of finance for our clients. Our relationships with lenders allows us to negoitate loans and meet unusual and complex working capital loan requirements, as in this case, give the international elements and flexibility needed by the client in view of the possibility to continued growth.
In this instance, we provided a full corporate financing package that included three different facilities to support the immediate need to purchase additional stock (in the form of a stock purchase loan), as well as funding the ongoing buy-side of stock purchasing (in the form of a supplier finance facility) and the sell-side financing (in the form of a receivables facility).