£1 million Refinance Deal Funds Investment
The Opportunity
The client is an established family business with historic involvement in the processing and trading of scrap metal from multiple sites. They had identified a niche opportunity which involved processing highly contaminated incinerator waste – a process that produces a premium melting product of 90-100% ferrous metal which is now highly sought after in a secondary market.
This client required substantial investment for a new plant to support the anticipated growth brought about by having identified these new markets and having acquired potential UK and export customers.
The Challenge
Timescale was the primary challenge given a significant amount of Company cashflow had previously been invested in the line, which had created some stretch on available working capital. This was further exacerbated by the need to increase trading terms in a bid to acquire new, highly profitable, overseas contracts.
It was therefore imperative to move the deal quickly both in terms of valuation and coordination of final credit approval. This would involve a visit to meet with the Company within days of receipt of the proposal.
The Solution
We responded to this sizeable request in ultra-quick timescales, meeting with the client to understand the business model and future strategy of the business. Early release of the refinance proceeds placed the client in a strong position to tender for new contracts, further supporting their opportunity to scale the business.
