- Client: UK-based private company
- Loan Amount: Circa £2 million
- Purpose: Business development and refinancing existing debt
- Structure: Unsecured lending
Enness was approached by a market-leading private business looking to raise additional finance to develop its offering while also refinancing some existing debt that had become expensive.
The company presented a number of challenges from a lending perspective. Its structure meant there was limited security available to support the borrowing, while the business also generated income through several international subsidiaries. The client therefore needed a lender that could look beyond traditional secured lending and understand the wider strength and structure of the business.
Enness took the requirement to market and explored lenders with the appetite to provide a significant unsecured facility. The objective was to find a structure that would provide the company with the capital required for its growth plans while also improving the cost and structure of its existing borrowing.
We identified a lender that was prepared to provide the funding under the Government’s Growth Guarantee Scheme. This allowed the business to access the required level of finance despite having limited conventional security available.
The resulting facility gave the company the funding it needed to continue developing its offering while refinancing more expensive existing debt. By combining these requirements into one financing exercise, the business was able to approach its next stage of growth with a more suitable funding structure.
The case demonstrates why businesses without substantial conventional security should not necessarily assume that significant borrowing is unavailable. Where a company has a strong underlying business, international operations and a clear purpose for the funding, specialist lender selection can make a meaningful difference to the options available.
If you or your clients are looking to raise finance for business growth or refinance existing borrowing, speak to a corporate finance specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or accounting advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances, business performance and the proposed transaction.
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