Debtor Finance Facility
Our client commenced trading four years ago and had been building their own brand in the food manufacturing industry. For the last two years the business had invested in acquiring further branding and PPE to expand their wholesale manufacturing, win new contracts and continued to advance their retail product offering.
Operating at under 50% capacity and having secured large contracts, the business partnered with Moneytech to assist them in two key areas: 1) Increasing their operating capacity to meet their contract obligations, and, 2) Supported their growing and diversifying revenue portfolio. Their bank was unwillingly to offer the suitable support they required to grow while maintaining burdensome reporting covenants.
Moneytech structured a $6.75m Debtor Finance Facility which provided the client with a competitive advance rate and the flexibility to grow. The facility helped the business achieve their goals of increasing their operating capacity, meet their contract deadlines, improve their working capital by freeing up cash to reinvest into the business, and strengthened their financial backing to grow and attract new investors. The quick turnaround and Moneytech’s speed to market was also highly attractive in meeting their financial reporting deadlines.