Time Finance provides Multi-Product Funding Solution for Wholesaler of Commercial Piping
Facility Type: Invoice Finance & Loan Facility
Region: Yorkshire
Facility Value: £2.2million Confidential Invoice Finance Facility + £550k Xtra Time Loan
Introduction to the Deal
This client has been an established wholesaler of commercial piping for over 65 years and had enjoyed a long-term banking relationship with their financier, but due to extenuating circumstances their relationship changed, and it was mutually agreed that they should look for a new funder for their finance facilities, which included an overdraft, trade finance loans and invoice finance.
During this transition the owners found themselves requiring a complete restructuring of their finances.
The breakdown in the relationship between the client and their funder was causing the business issues and with their funder only allowing critical payments to be made – it was vital we created a solution which would not only cover the business’s existing facilities but also enabled a swift and smooth transition.
What We Did
Firstly, we worked closely with the management team to take a deeper look at the business’s finances, their assets, and existing contracts. After assessing the full picture, we replaced their existing invoice finance facility with a £2.2m arrangement and to further assist the business, we temporarily upped their payment limit to 95%. To repay the client’s overdraft and trade finance liabilities we put into place a £550,000 Xtra Time Loan facility.
Outcome of the Deal
Our invoice finance facility and Xtra Time Overpayment has given this client the vital working capital needed to keep the company running whilst they transition through this challenging period. With the help of our funding, this newly restructured business has an opportunity to rebuild on a more stable footing and continue delivering their products and services to their loyal customer base.
