Discover how a bespoke financial solution unlocked significant growth opportunities for a successful, fourth-generation family-owned business operating across pallet sales, haulage, recycling, woodchip sales, and warehousing. Facing the constraints of traditional funding and increasing operational demands, this company’s collaboration with an innovative financial partner transformed cash flow challenges into strategic growth.
This resilient family enterprise, renowned for its robust £5.6 million annual turnover, encountered cash flow pressures amid rising demand and constraints from conventional lenders, particularly affecting their warehousing operations. With a significant storage contract servicing a prominent breakfast cereal brand, their need for tailored financial support was critical. Moreover, enhancing their operational fleet became essential to accommodate their expanding logistical demands.
Recognising these unique needs, our customised Asset Based Lending (ABL) package provided the perfect solution. This carefully structured financial strategy encompassed a confidential invoice finance facility of £1.4 million alongside an asset finance facility worth £250,000. Our intervention, stepping in where traditional lenders fell short, unlocked approximately £100,000 of additional liquidity by financing segments of the client’s business previously overlooked. This strategic infusion of capital significantly bolstered their working capital position.
Warehousing, with its extended inventory holding periods, posed a particular challenge for conventional financing due to security complexities related to stored goods. Our targeted solution addressed these challenges effectively, incorporating proactive measures such as a Landlord’s Waiver and regular monitoring of rental obligations to safeguard the invested funds.
Additionally, the asset finance facility allowed the client to upgrade their operational capabilities through the acquisition of two new Heavy Goods Vehicles (HGVs). This investment significantly boosted fleet capacity, operational efficiency, and service reliability, crucial for maintaining high standards and meeting the demands of an expanding customer base.
The outcomes from this innovative financial solution were immediate and transformative. Enhanced cash flow provided immediate relief, enabling strategic expansion of warehousing operations, while the new vehicles elevated logistical performance and strengthened overall operational effectiveness.
Ultimately, our ability to craft a multi-dimensional financial solution tailored to this client’s specific requirements played a decisive role in facilitating this transformative deal. This strategic partnership now positions the business firmly on a trajectory towards sustained growth, supporting their vision of becoming the premier provider for sustainable logistics and comprehensive pallet solutions.
In summary, this fourth-generation family-owned company excels in pallet sales, haulage, recycling, woodchip sales, and warehousing, and is committed to delivering innovative, sustainable logistical solutions.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
