A bespoke catering company approached Moorgate Finance during a quieter trading period following the purchase of a new food truck. The vehicle had been a key investment to support growth and expand their event offering, however it had also placed immediate pressure on cash flow. With ongoing projects to deliver and new enquiries coming in, the business needed a funding solution that would release capital quickly without disrupting day-to-day operations.
The Highlights
✅ Secured funding despite previous decline and challenging credit profile
✅ Released equity via a sale and hire purchase back on the food truck
✅ Improved cash flow to support ongoing work and secure new bookings
✅ Enabled rapid business growth, with the food truck fully repaid in 4 months and plans for expansion within 6 months
The Challenge
The customer was dealing with a dual challenge of restricted cash flow and limited access to traditional funding. The purchase of the food truck had tied up a significant amount of working capital, leaving the business with reduced flexibility during a quieter seasonal trading period. This made it difficult to comfortably manage overheads, take on additional bookings, and maintain the same level of operational confidence when responding to new enquiries.
Alongside the cash flow pressure, the customer had already experienced rejection when applying for funding through another broker. This was due to a challenging personal credit profile, which meant mainstream lenders were reluctant to support the request. As a result, the customer was left in a position where they had invested in a key asset for growth but were unable to access further funding to fully utilise it. This created uncertainty at a time when demand was still present but capital was restricted.
The Solution
Moorgate Finance assessed the situation and identified a sale and hire purchase back solution secured against the customer’s food truck. This approach allowed us to unlock the equity held within the asset while ensuring the customer retained full use of it to continue trading and fulfilling catering commitments.
By structuring the funding in this way, we were able to release immediate working capital into the business without relying on traditional credit scoring alone. This was particularly important given the customer’s previous decline and personal credit challenges, which had limited their options elsewhere.
The funds provided a much-needed boost to cash flow, enabling the business to continue delivering current projects without interruption and confidently accept new event enquiries. It also allowed them to secure future bookings with greater certainty, knowing they had the liquidity required to support growth during both busy and quieter trading periods. The solution effectively turned a previously locked asset into a source of working capital that could be reinvested directly into revenue-generating activity.
Need funding solutions like these for your business? Give us a call on 01908 92 62 62 or head to www.moorgatefinance.com/apply-now to start the conversation.
