How a £540,000 cash injection using asset refinance helped bolster the clients growth recovery post pandemic.

The Brief

An engineering company in the energy sector was looking to raise in excess of £500k of working capital to fund a new 4 year contract as a result of a successful tender.

Unsure of the most cost and time efficient way to raise the funding, they turned to their auditor as trusted advisors. The auditors in turn introduced Breadalbane to the client to explore the different funding options available.

The Challenge

Due to the impact of the pandemic, the company had seen a drop in revenue which impacted profitability. And whilst the core business remained strong, this may have hindered accessing funding through their usual route via their bank.

The client and auditor also felt that pursuing one avenue of funding through their traditional banking route would be putting all their eggs in one basket. Breadalbane could approach multiple funders concurrently to ensure the client had as many options as possible.

Solution

Breadalbane identified the client had significant equity in fixed assets and so restructuring the funding would not only release the working capital required but consolidate existing payments and reduce monthly outgoings to build more headroom in their cashflow. 

To maximise the equity that could be released from the assets, Breadalbane engaged with a specialist external valuer to understand the assets and maximise their value, compared to a traditional desktop value from a standard panel valuer, which often lowballs values.

Outcome

By releasing equity tied up in assets, the client raised £540,000. This cash injection strengthens the business in the short term, helping to meet their clients requirements and deliver their four year contract.

What The Client Said

“These funds secured by Breadalbane will help strengthen our business in the short term and bolster our growth recovery post pandemic. 

Breadalbane understood our needs from the outset and worked closely with us to secure funding which met our business needs. The team was knowledgeable, transparent and approachable.”