- Client: Online retailer and wholesaler in the apparel sector
- Loan Amount: £1,700,000
- Facility Type: Stock purchase loan, receivables facility and supplier finance facility
Enness was approached by an established online retail and wholesale business operating in the apparel sector that was looking to secure additional working capital to support its continued growth. The business had historically been funded exclusively through shareholder capital but had recently secured a number of significant contracts with new clients, creating an immediate requirement for additional liquidity.
The new contracts represented an important growth opportunity, but fulfilling them required the business to purchase additional stock and manage the timing gap between paying suppliers and receiving payment from customers. The client therefore needed a financing structure that could support its immediate commitments while also providing flexibility as the business continued to grow.
The transaction was further complicated by the international nature of the group. The business had both UK and overseas entities and sourced stock from multiple international jurisdictions, supplying customers across the UK and Europe. The finance therefore needed to accommodate the different stages of the company’s working capital cycle, from purchasing stock through to fulfilling orders and ultimately receiving customer payments.
Rather than arranging a single facility, Enness structured a comprehensive corporate finance package comprising three separate facilities with a combined value of £1.7 million.
The first element was a stock purchase loan, providing the immediate capital required to purchase additional inventory and fulfil the newly secured contracts. The second was a supplier finance facility, supporting the ongoing purchase of stock and helping the business manage its relationships and payment obligations with suppliers. The third was a receivables facility, providing financing against the company’s sell-side receivables and helping bridge the gap between fulfilling orders and receiving payment from customers.
Structuring the finance across three complementary facilities allowed the funding to reflect the different stages of the company’s working capital cycle. It also provided greater flexibility than a single-purpose facility, supporting both the immediate requirements created by the new contracts and the company’s longer-term growth plans.
Enness has experience arranging working capital finance for established businesses with complex requirements, including companies operating across multiple jurisdictions. By understanding how capital moves through the business, Enness can explore structures that are designed around the specific funding requirements rather than relying on a standard lending solution.
This case demonstrates how a combination of stock, supplier and receivables finance can provide a more comprehensive working capital solution for a growing business. The right structure can help businesses manage immediate funding requirements while retaining the flexibility needed to pursue further commercial opportunities.
If your business requires additional working capital to support growth, fulfil new contracts or manage international supply chains, Enness can assess your requirements and explore suitable corporate finance solutions.
Risk Warning:
Corporate finance carries risks. Businesses should ensure that borrowing is affordable and that a clear repayment strategy is in place. Failure to meet the terms of a facility may result in financial consequences, including enforcement action where security has been provided.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting, affordability, cash-flow assessment and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.
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.
