Enness Provides a Tailored Financial Solution to a UK Construction Enterprise

• Client: British construction company
• Business Value: £5 million+
• Loan: £3 million
• Term: 15 years
• Rate: 2% above Bank Base Rate, with a fixed-rate option
• Repayment: No early repayment charges

Enness was approached by a prominent British construction company operating from a substantial site in the north of England. The business occupied the site under a long-term lease and had established itself as a significant operator within the UK construction sector.

A specialist assessment placed the value of the enterprise at more than £5 million. The company also held a significant reserve of construction materials, providing it with the resources required to support its ongoing operations and future projects. However, the business was facing increased production costs alongside additional one-off expenses, creating a requirement for additional capital and a financing structure that provided greater flexibility.

The ownership structure added another layer of complexity to the transaction. Enness therefore needed to understand the company's wider financial and ownership position and identify a lender capable of taking a more bespoke approach rather than relying solely on conventional lending criteria.

Following a detailed assessment of the business and its requirements, Enness negotiated a £3 million loan structured over 15 years. The facility was priced at 2% above Bank Base Rate, with the option to move onto a fixed rate, giving the company greater certainty over its future financing costs should it choose to fix the borrowing.

A key feature of the facility was the absence of early repayment charges. This gave the business the flexibility to make lump-sum repayments during the term without incurring a penalty. This was particularly valuable given the company's ongoing operations and the potential for its financial position and available cash flow to change over time.

The bespoke structure provided the construction company with access to substantial long-term funding while retaining flexibility over how and when the debt could be repaid. Rather than simply providing a standard loan, Enness structured the facility around the company's specific circumstances, ownership structure and longer-term requirements.

This case demonstrates the value of taking a holistic approach to corporate finance, particularly where a business has complex ownership arrangements, significant underlying assets and a requirement for flexible long-term borrowing. By understanding the wider circumstances and approaching the appropriate specialist lender, Enness was able to negotiate a facility that provided both capital and flexibility.

If your business requires bespoke corporate finance or a flexible funding structure, speak to a finance specialist to discuss your requirements.

Risk Warning:
Corporate borrowing carries risks. Businesses should ensure that any borrowing remains affordable throughout the facility term and that a realistic repayment strategy is in place. If the facility is secured and the borrower fails to meet its obligations, the lender may take enforcement action against the assets provided as security.

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 individual circumstances and the proposed transaction.