Case Study 1

The Limited Company is in the leisure and entertainment Business

Method of introduction – Referral from accountant

Initial request
To look at re financing unencumbered fixed assets with the view of releasing money back into the business. VC Ltd had grown and expanded since its inception. The view of the directors had always been to buy and own all of the fixed assets. This had meant that they had some £150,000 worth of assets on the balance sheet. This had though tied up vital working capital.

As the business had grown more work had come in and this had meant strain on cash flow. The view was that it would be tight over the final quarter of the year. An ask of £50,000 was required.

The re finance of the assets would release this the much needed cash into the business. Requirement for this was as soon as possible.

Having reviewed the assets register whilst there was tangible value, with the need to release cash quickly it was decided to look for a working capital cash injection. This would achieve the desired result more quickly and then leave the review of a possible re finance of assets to be undertaken at a later stage.

Having discussed this need with VC Ltd the proposal was passed across to one of our preferred contacts with experience on this, to source a funder.

Information such as latest accounts were sort and this along with the Directors information were sent across to the funder. All of this was then reviewed and an offer for £50,000 came back. VC Ltd agreed to the offer and all the paperwork was duly signed.

The outcome
Funds were made available with 48 hours and thus the much needed cash injection got to work.

The follow up
As always we arrange a follow up meeting, VC Ltd were very happy with the outcome and speed of the transaction. We are now working together to look at other possible funding opportunities, that include a new van and possible additional assets required as the business grows in the future.

Can we help you with something similar or a relevant cashflow requirement?