- Client: UK-based service provider in the transport sector
- Loan amount: £750,000
- Facility: Unsecured working capital loan
Enness was approached by a well-established service provider in the transport sector that had recently secured several new contracts. The additional work represented a significant growth opportunity, but the business needed access to capital quickly to take on additional premises and increase its employee headcount.
Rather than requiring finance to purchase a long-term asset, the client needed working capital that could be used to support the day-to-day costs associated with expanding the business. This included the additional operational expenditure that comes with taking on new premises and growing the team.
The challenge was to secure the required funding without putting company assets forward as security. An unsecured facility was therefore the preferred route, but this meant finding a lender comfortable with the company’s financial position, trading history and prospects for continued growth.
Enness sourced a £750,000 unsecured working capital facility. The structure allowed the business to access the capital it needed to support the new contracts without securing the borrowing against company assets.
Unsecured working capital finance can be particularly useful for established businesses with a strong trading history and clear demand for their products or services. However, lenders will typically assess the strength of the business, its financial performance and its ability to service the borrowing before deciding whether an unsecured facility is appropriate.
In this case, the client’s established position and recently won contracts provided the basis for a funding solution that supported its next stage of growth. The facility gave the business access to additional working capital while allowing it to pursue the opportunities created by its expanding order book.
If your business has secured new contracts, is expanding its operations or needs additional liquidity to support growth, working capital finance could provide a suitable solution. Enness can assess your circumstances and explore the specialist lending options available to your business.
Risk Warning:
Borrowing creates financial obligations for a business. Failure to meet repayment requirements could result in additional costs, enforcement action or other consequences for the borrower. Finance is subject to lender criteria and individual circumstances.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on the circumstances of the business and the facility required.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
