Key Details:
- Circa £2.4m total facility
- Receivables + inventory + term loan structure
- Cleared HMRC arrears and short-term debt
- Stabilised business and restored liquidity
A UK-based SME with approximately £6m annual turnover approached Enness during a period of increasing financial pressure. The business was experiencing strain on cash flow, driven by slower receivables and mounting obligations, leading to increased reliance on short-term funding.
While the underlying business remained fundamentally viable, with a proven trading model and consistent revenue base, the imbalance between incoming cash flow and outgoing obligations had begun to impact day-to-day operations. Creditor relationships were becoming strained, and without a structured funding solution, the business faced the risk of further disruption.
The company had accumulated material HMRC liabilities, alongside a significant level of short-term debt, creating acute pressure on liquidity and limiting financial flexibility.
Traditional refinancing routes proved challenging due to the existing debt profile and the perceived risk associated with HMRC arrears. Standard lending solutions were either insufficient in scale or lacked the flexibility required to address both the immediate liabilities and the broader working capital needs. A piecemeal approach would not have resolved the underlying structural issues, leaving the business exposed to ongoing cash flow pressure.
We structured a circa £2.4m asset-based lending (ABL) facility, combining a receivables finance line, inventory funding, and a term loan.
This multi-asset structure enabled the business to release liquidity across its balance sheet, leveraging both outstanding invoices and inventory to maximise funding availability. The facility was designed conservatively to ensure lender comfort while delivering sufficient capital to clear HMRC arrears, consolidate short-term debt, and restore financial stability.
By introducing a flexible working capital solution aligned to the company’s trading cycle, the structure provided immediate cash flow relief while reducing reliance on high-cost borrowing.
The transaction delivered a comprehensive refinancing solution, stabilising the business and strengthening its financial position. Immediate liquidity was restored, creditor pressure eased, and the company was able to refocus on operations and growth.
Importantly, the new structure established a scalable funding platform, ensuring the business is better positioned to manage cash flow, support future expansion, and avoid similar liquidity constraints going forward.
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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.
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