Commercial Finance

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Buisness Club 2017

Turnaround Finance

Turnaround is the generic name used to describe the process of reorganising a company in order to make the business more efficient and financially independent.

Our team will work with you to identify the best ways to modify the structure of the company’s finances, select suitable funding partners and implement the funding as agreed with the financial institutions.

The resultant funding may include commercial property mortgage, asset refinance, sales ledger funding, domestic and international trade finance, soft loans and grants, stock finance and vehicle leasing.

Working with our associate companies we can also provide insolvency services, Equity Investment, financial planning and credit insurance facilities if the situation requires such assistance.

Bespoke Solutions

No two cases that need turnaround assistance are ever the same. In many cases though the common thread is that the current banking facility ties up most of the company assets, without due consideration for the real value of the asset security. Most high street banking organisations will look for a minimum of twice the amount of security from assets as the funds advanced but will discount stock, work in progress and some forms of debtors. The real figure ends up being near to three to one security to loan.

By negotiating exclusive facilitates with our financial partners we are able to acquire sufficient funds to repay all current borrowings (if required) as well as providing a firm base of capital to take the business forward whilst funding future growth.

The instruments we will use include commercial mortgage, asset finance, invoice discounting, order completion and international trade finance, soft loans and grants (including the Small Firms Loan Guarantee Scheme), stock finance and equity investment from business angels.

Sale and Leaseback

Sale & Leaseback is a simple method of raising funds from your existing assets without having to dispose of them. As the name suggests and agreement is made to “sell” the company assets to a financial institution who in turn agrees to lease the items back to your company for an agreed rate over a set period of time.

In most cases we can provide 100% funding against the assets valuation and on certain classes of equipment this can be increased to 117.5%. The transfer is seamless and will not impact on the day to day running of the business.
In this way your company can utilise existing equity in “owned” (or financed) assets to provide essential working capital. Through our close relationships with our funding partners we are able to provide facilities that enable the ownership of the assets to be transferred back to your company after the primary lease repayments have been made.

Insolvency Advice

Our experienced partners’ turnaround consultants can assist businesses in financial difficulties to implement a strategy to get the business back onto a sound financial footing so that it can continue unaided.

The scope of the work is very much tailored to individual circumstances to ensure the business can successfully operate with the minimum of interruption whilst the review is taking place. Our partners willingly operate alongside the client's existing financial or legal advisers to ensure the work is carried out cost effectively.

The objectives of the strategy will be to assist your company to regain a strong independent financial position and a sense of direction to ensure the business has clear targets.

Businesses facing financial uncertainty generally benefit from an initial external overview which can identify underlying problems. Upon identification we can use our experience to offer practical solutions to remedy the problems. By utilising our contacts in all areas of business we are able to bring the business all the skill sets that may be missing within the current structure.

Case Study

Our client had a traditionally successful business that had posted losses in its accounts to December 2002 off the back of poor management control of the sales department and a rise in the base cost of metal used in their production process. A business recovery plan was put together by the directors but rejected by their bankers on the basis that they needed additional capital to accomplish the plan. They received a notice to repay all debt within 28 days from the bank without further negotiation.

We immediately carried out an analysis of the viability of the company and found that with the correct funding in place the company could easily return to profitability with a 12 month period following the comprehensive plan already constructed. The company assets were valued independently (which included a commercial premises, plant and machinery and vehicles) and a refinance package was put in place that repaid the bank borrowings in full and created a surplus of £110,000 in cash. The company also took advantage of a confidential invoice discounting facility we arranged that released a further availability of funds of £275,000.

This was all completed with a 21 day period and the client has recently sold the business to it competitor having post profits in excess of £500,000 in the last 12 months.

We have assisted many clients and we would be pleased to share our experiences with you either over the phone or in person.

For help & assistance please contact our Commercial Finance team on 01482 213215

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