BUSINESS TYPE:	LABOUR SUPPLY COMPANY
LOCATION:	EAST MIDLANDS
NEW CAPITAL:	£3,000,000

We were approached via our website by a Derby based company who supply labour to the rail industry. Their turnover was £10 million plus but they had encountered difficulty with their Invoice Discount supplier (a major bank), who were no longer willing to cover the ID ledger (some £1.5m), due to credit re-insurance problems with the rail industry client. This was in danger of bringing to a complete halt the very encouraging growth of this one year old business, which was set to increase turnover to £20 million plus over the next two years.

We were engaged by the client and, having carried out our internal job of work, generated a significant amount of interest from our shortlist of investors. Our client received three of funding, one of which stood out. Including extensive due diligence and negotiations by the two side’s legal advisers, the deal was completed in exactly 8 weeks from take on.

Our investor has made available a £3m facility to allow our client company to grow to its full potential, at the same time obtained a 26% shareholding.

From a banking perspective, we have helped resolve an impossible situation. No lender was prepared to take on the risk of our client’s major customer. Starved of working capital the business was under financial pressure even though it is very profitable.

By providing a private funding solution we helped the Invoice Discounter manage away a client successfully and allowed another Clearer to take on new business that can be fully insured.

NEXT