In conjunction with a local Accountancy Practice, we recently assisted one of their clients with a working capital facility after the business hit a small issue with their cash-flow cycle.

Having recently moved to larger premises, the business had seen an extended period of reduced manufacturing capability, in part due to the need to relocate some very large machinery. Due to the size and weight of some of the bespoke stone cutting equipment, the new premises needed the factory floor to be strengthened and a higher capacity electrical circuit also needed installing. This had a very obvious short term and adverse impact on turnover due to the business not being able manufacture whilst this remedial work was undertaken,

The solution was to provide the business with a cash advance against the incumbent sales ledger, with the invoice finance provider able to advance a significant percentage against each outstanding debtor. We arranged for the business to meet with a couple of suitable lenders and then quickly secured competitive terms, to include.

Facility amount: £150,000 – The limit can be increased as the businesses turnover grows

Initial payment level: 85% of approved debts

In addition to the above, we were able to dilute the personal guarantee to 20% of the funding line, thus limiting the Directors personal liability.

Oxygen Business Finance are knowledgeable in all aspects of asset-based lending, contact us today to find out more about our range of cashflow finance solutions for SME’s. From factoring to invoice finance, business loans to merchant cash advances, you can rest assured we have a solution for most businesses.