Key Details:
- Circa £1.8M total working capital facility
- Receivables-led structure with a term loan overlay
- Designed to consolidate short-term debt
- Structured to improve working capital flexibility
Even profitable businesses can experience cash flow pressure when funding arrangements no longer reflect the way they trade. An established company with annual turnover of approximately £4.5M approached Enness Global to review its existing borrowing after short-term facilities and overdraft usage began restricting day-to-day financial flexibility.
The business benefited from a strong base of recurring institutional clients and predictable revenue, but its existing funding structure had gradually become inefficient. Approximately £500,000 of short-term borrowing, combined with a £250,000 overdraft, created significant monthly repayment commitments and reduced the liquidity available to support ongoing operations and future growth.
Although the underlying business remained commercially strong, conventional refinancing options alone were unlikely to resolve the wider working capital challenge. A more flexible funding structure was required that could better align borrowing with the company's revenue cycle while simplifying the existing debt profile.
Enness proposed a bespoke working capital facility of approximately £1.8M, subject to lender assessment and approval. The proposed structure combined a receivables finance line of around £1.3M with a £550,000 term loan, enabling both ongoing working capital support and the refinancing of existing short-term liabilities.
By releasing liquidity tied up in outstanding invoices, the proposed structure was designed to improve cash flow flexibility while reducing reliance on short-term borrowing. Combining receivables finance with a term loan also created a funding platform better aligned with the company's trading cycle and future growth plans.
This case highlights how a blended working capital solution can provide greater flexibility for established businesses where existing borrowing arrangements no longer support operational requirements. Combining receivables finance with longer-term funding may help strengthen liquidity and improve financial resilience, subject to lender criteria and the individual circumstances of the business.
Disclaimer
This case study is provided for illustrative purposes only and does not constitute financial, legal, tax or accounting advice. Some examples may be based on client enquiries or indicative lending terms and do not necessarily represent completed transactions. Enness Global acts as a broker and not as a lender. All lending is subject to status, underwriting, valuation and lender approval. Loan terms, pricing and facility structures vary depending on individual circumstances, business performance and market conditions. Independent professional advice should be sought before entering into any financial arrangement.
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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.
