Fund business acquisition and meet working capital needs.
$4,000,000 in limits comprising a property secured Term Loan, Equipment Finance, Debtor Finance & Trade Finance.
The client was acquiring a well established business with a long trading history and wanted to use the business assets to help acquire the business and have working capital facilities to meet the ongoing trading requirements. The client complied with the relevant legal requirements to use business assets to assist with the finance.
The business being acquired was a divestment from another entity, so there was no standalone financial to seek finance on. There was a heavy reliance on forecasts, some of the assets were older and a broader solution, that not just met the day one acquisition need but also the ongoing needs that would enable them to trade in the early months of ownership was essential.
1) 2nd Mortgage Term Loan on a number of properties and Equipment Finance against business assets to meet the cash settlement required with the vendor as well as their equity contribution. 2) Debtor Finance Facility to provide working capital assistance. 3) Trade Finance Facility to meet supplier payments.