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    Waste Disposal Business

    December 2012

    Location: Durham
    Facility: £400,000

    Restructuring of existing asset finance and commercial mortgage agreements

    Our client is a waste disposal business based in Durham. They had serious cash flow pressures and in fairness had got themselves in to a bit of a mess. We are very proud of what we were able to achieve with this client at a time when other advisors including the clients own accountant had ‘gone missing’.

    We were able to work with the client and the existing invoice discounting provider to provide a better structured confidential factoring facility. The business also desperately needed an additional injection of cash into the business but also needed it’s existing debt restructuring.

    We worked with this waste disposal business over a period of months and we were able to achieve the following:

    • We worked with the existing provider of invoice discounting to structure a confidential factoring facility that improved debt turn by providing a credit control service.
    • This facility provided the lender with more comfort also as they were closer to the debt and as such were willing to offer more support in the form of overpayments on the facility when required.
    • We refinanced the machinery already owned within the business to provide a cash injection which provided much needed working capital to relieve creditor pressure.
    • We worked with the existing asset finance providers to structure the existing agreements over a longer period which reduced monthly repayments and relieve cash flow pressure.
    • We also worked with the existing commercial mortgage provider to extend the term of the mortgage again to reduce the monthly repayments and make the monthly cash flow work for the business.
    • The monthly outgoings were reduced by over £13,000 which made a dramatic difference to the outlook of this family owned.
    • We also secured a new asset finance deal to purchase new skips so the business could expand.

    Through working closely with our client, the existing lenders and providing a new asset refinance deal it is safe to say that we saved this business. It now has a business where cash flow allows suppliers and employees to be paid on time. The new asset finance deal has allowed the business to service new clients and expand.

    This is a good example of how Funding Solutions act as much more than a finance broker. We were the trusted advisor to this business and implemented a full turnaround solution. We were able to save a family owned business and a considerable amount of jobs.