The Challenge

A UK-based SME operating within the manufacturing and distribution sector faced increasing liquidity pressure following a period of rapid growth. Although the business had a strong order book and valuable asset base, cash flow became strained due to extended debtor payment terms and legacy banking facilities that were no longer fit for purpose.

HSBC was unable and unwilling to provide additional funding or flexibility due to restrictive credit policies, placing the business at risk of breaching covenants and limiting its ability to fulfil new contracts.

The shareholders required a fast, discreet funding solution that would stabilize working capital, refinance existing debt, and provide headroom for continued growth without disrupting daily operations.

Our Approach

Step 1: Business Review and Understanding

We conducted a confidential and detailed review of the company’s financial position, asset base, debtor book, and operational requirements. We worked closely with management to understand the commercial objectives, time pressures, and potential exit strategies.

Step 2: Credit & Risk Review

We assessed risk, security and repayment structures, focusing on sustainability rather than short-term solutions.

Step 3: Solution

We structured a bespoke funding package combining:

• Asset-backed lending secured against plant and machinery
• Debtor book funding to unlock cash tied up in receivables
• A revolving credit facility aligned with seasonal cash flow cycles

The solution was designed to refinance existing liabilities, inject immediate liquidity, and provide ongoing flexibility.

Step 4: Execution & Funding

Despite the complexity of the transaction, we completed documentation and released funds ahead of the client’s anticipated timeline, ensuring uninterrupted trading and supplier confidence.

Step 5: Ongoing Support

Post-completion, we continued to support the business with strategic oversight, monitoring, and commercial guidance. Our ongoing advisory team’s role helped management optimise cash flow, improve financial visibility, and plan for future expansion.

The Outcome

• £3.5m structured funding facility completed

• Immediate stabilisation of cash flow

• Refinancing of legacy banking debt

• Improved liquidity and operational flexibility

• Business positioned for sustainable growth and future strategic opportunities

The client retained full operational control while benefiting from our input, and we were able to demonstrate how to think creatively, move decisively, and support the business.