Disclosed factoring facility secured for new meat importer
Recently established, this ambitious business specialises in the import and distribution of fresh and frozen meat across the UK and Europe.
Backed by a Danish holding company, the UK trading arm, also served as the operational hub for all back office functions. With a growing network of sales entities across Europe, all sales were being invoiced centrally through the UK. Goods are imported and stored at a third-party cold storage facility and distributed directly from there, with signed proof of delivery on all orders. The company also has plans to diversify their product range.
The challenge
Despite a strong start and a clear growth trajectory, the business faced a common challenge: bridging the cash flow gap between paying suppliers – who required either proforma payment or seven-day terms – and receiving payment from customers. With sales forecasted to increase rapidly, the business needed a flexible funding solution that could scale in line with demand.
Having spent several months working with another broker, the business had only received introductions whereby sadly the lenders introduced were unable to support their requirements. The business was keen to retain control of their credit control and management function in-house.
The solution
After discovering Hilton-Baird Financial Solutions through our online quote tool, the business engaged with our team to explore suitable funding options. We took the time to understand the company’s structure, trading model and growth ambitions and identified several funders who could meet their requirements.
It was essential to find a provider that could move quickly, offer a facility based on forecasted sales and structure the arrangement with security limited to a corporate guarantee. Just as importantly, the client wanted to retain their credit control function, so flexibility was key.
Following detailed discussions with our client and potential funders and a thorough review of the options with our client, the client selected their preference. This then resulted in a meeting, followed swiftly by a new business survey being conducted, resulting in a factoring facility being secured, whereby the client undertakes their own collections – aligning perfectly with the business’s needs and supporting their expansion across Europe.
The result
The business secured a £2,000,000 disclosed factoring facility, providing the working capital needed to meet supplier terms and fuel its growth. Sales have subsequently increased now that they have a solution aligned with their growth strategy.
To explore the options available to your business, or to compare any existing facilities against the wider market, contact our team on 0800 9774833 or request a call back.
