This profitable construction manufacturing business required an injection into their cashflow in order to meet demands of a new lucrative business contract they had precured.
The Challenge
This manufacturing business had previously taken out short term loans in order to invest in specific projects that provided an immediate return for the business. However, the repayments ate into their expendable income, preventing them from being able to do any further projects. Although there was long term gain, the funding meant their cash was tied up in the short term.
In addition to this, the business had their debtors’ limits capped within their invoice finance facility, meaning there were no further funds available when works were complete, generating more cash flow strain. With both long and short term loans and asset finance, the client was highly geared and not an attractive prospect to prospective lenders, despite being a profitable business. Existing long-term funders were either already at maximum exposure or not willing to fund whilst the short-term lenders would have created more vulnerability in their cash flow.
The Solution
Moorgate Finance successfully facilitated a government-backed loan to support the manufacturing business in restructuring their existing debt and improving its financial position. After thoroughly assessing their needs and long-term objectives, we secured £350,000 over a 60-month term. This funding was used to consolidate their existing finance to significantly ease the business’s cash flow and lay the groundwork for sustainable growth.
The new structure resulted in an immediate reduction of £8,000 in monthly outgoings, providing the company with the flexibility to invest back into their operations. With this improved financial position, the business was able to employ four additional members of staff to support increased demand from new contracts. The funding also provided essential headroom to take on further work and rent additional equipment as needed, boosting overall capacity and enabling the business to pursue expansion with confidence.
The Highlights
✅ £350,000 government backed loan secured for a manufacturing business, structured over 60-months
✅ Funding generated an £8,000 reduction in monthly outgoings
✅ The improved financial position enabled the business to hire four additional staff members to fulfil new contract requirements
✅ With strengthened cash flow, the business gained headroom to take on more work and rent equipment as required.
Give us a call on 01908 92 62 62 or head to www.moorgatefinance.com/apply-now to start the conversation.