Trade Finance Case Study
Supplier of High End Silverware to UK Retail Sector.
The business was facing administration following a family dispute. This in turn led to the management part of the business wanting to take advantage of an earlier than expected Management Buy-Out (MBO), potentially from the administrator. However, they could not raise sufficient funds to complete the MBO and ensure that there was enough of a buffer within the new prospectus for future trading.
The Challenge – Cash Solution to Allow Time for Negotiations
Sourcing a suitable cash solution either through a pre-pack route or via a corporate re-organisation was essential, giving both the owners and the new management team adequate time to manoeuvre in their negotiations.
The BFS Solution
BFS introduced one of their valued Trade Finance Partnerships who managed to inject enough capital to avoid insolvency by purchasing the company’s existing stock. This in turn would facilitate the MBO, and provide an additional trade finance facility to bolster working capital going forward. The trade finance company of choice were quick to react and offer our client two very bespoke funding facilities.
Post MBO the company is now trading at a high level from which it can build on and win future contracts that will see it grow over the coming years. BFS will be retaining a close relationship with this company and will be available when funding is required again.
We Can Help You
If you’ve tried the banks and traditional avenues for funding your business with no success, we can help. Contact us and we can give you all the information you need to secure funding. Call us now on 0121 725 0099.