Enquiry

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Bakery

February 2013

Location: Newcastle
Facility: £250,000

bakery
Our client has an existing business baking pies and selling them to local pubs, universities and shops. They also retail the pies at festivals. They had the opportunity to purchase another bakery business that specialised in baking bread and cakes out of administration.

The business they were looking to purchase was already financed by the factoring arm of one of the high street banks. Unfortunately, the banks was not willing to support the business after it’s administration. As such they needed a new working capital facility and they needed it within a week. We met with them and reviewed the customer base and their processes. It was certainly a business well suited to an invoice finance facility and we were confident from the outset that we could assist.

Due to the timescales involved we were able to submit the required information directly to a lender’s underwriters and gain support for the business that very same day. This meant our client could push on with the transaction safe in the knowledge they had the support of a large independent factoring company. Legal documentation was signed the following day for the facility and the finance was in place as soon as the purchase of the business was completed.

The speed that we were able to move at meant that our client was able to acquire another business. We were able to move quickly because of our market knowledge and direct access to underwriters. To secure a formal offer in a matter of hours was a real achievement and added real vcalue to our client and his other advisors. They are reducing costs and also growing the customer base with the knowledge that they can offer credit terms to businesses without having to worry about their own cash flow.