- Client: UK business
- Loan Amount: Circa £110,000
- Term: 12 months
- Requirement: Working capital to fund a time-sensitive stock purchase
- Drawdown: Within 24 hours
Enness was approached by a business that had been given the opportunity to purchase a significant volume of stock at a substantial saving. The opportunity was commercially attractive, but there was a catch: the purchase had to be completed before the end of the month.
The business did not have sufficient working capital available to take advantage of the offer and approached Enness just 48 hours before the deadline. With limited time to find a suitable solution, the priority was to identify a lender that could assess the opportunity quickly while providing a level of funding that would allow the business to proceed.
Enness took the purchase order to market and obtained multiple sets of indicative terms within an hour. Once the client decided to proceed, we worked quickly through the necessary administration and compliance requirements to move the application towards completion.
A 12-month unsecured business loan of approximately £110,000 was secured, supported by a personal guarantee. The structure provided the business with a fixed repayment period and a flexible repayment option, allowing the client to reduce the outstanding balance ahead of schedule without an additional repayment charge, subject to the agreed terms.
The speed of the transaction was particularly important. The loan was drawn within 24 hours of the client engaging Enness, giving the business access to the capital while the stock purchase opportunity was still available.
For the client, the facility provided a way to fund an otherwise time-sensitive purchase without having to use the entirety of its existing working capital. The ability to spread repayment over 12 months also gave the business greater visibility over its cash flow while it benefited from the stock acquisition.
The case demonstrates how access to the right type of business finance can be particularly valuable when a commercial opportunity has a very short window. In situations where speed is critical, understanding the available lending options and presenting the requirement clearly to the right lender can make a significant difference.
If your business needs funding to take advantage of a time-sensitive opportunity, 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. Business borrowing may require personal guarantees, which can expose guarantors to personal liability if the business fails to meet its obligations.
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.
