Factoring Case Study - Plant Hire £1.3m t/o

Deal type: Divorce Settlement Industry Sector: Plant Hire Turnover: £1.3m

An unusual one this.

The sole director of this company needed to raise £150k to settle his divorce. Unfortunately his business had lost £300k in the previous year and his bankers, not surprisingly, were reluctant to increase his overdraft limit of £100k despite the debtor book standing at £300k.

Despite the large loss and the fact that plant hire companies are not top of the invoice finance markets Christmas list we were able to arrange a factoring facility of 80% of invoice value.

Whilst enough to clear the overdraft and pay off his divorce we felt this left the business seriously short of working capital. Putting on our Asset Finance hat, were able to raise a further £170k from a sale and leaseback of the company's unencumbered plant and machinery to give the business the flexibility it needed going forward.

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