Meeting all stakeholders requirements
- Logistics company which already had some Venture Capital investment
- The company required further funding in business
- But management and VC wanted to avoid shareholder dilution
- Business plan was written to replace the company’s existing working capital facility & a solution was proposed whereby a lender would provide a
- Confidential Invoice Discounting facility
- Coupled with a “Forward Order Facility” (FOF)
- There was a need to change the financial systems to satisfy the lender's requirements
- The FOF was secured with covenant from client’s customers
- The new funder provided CID facility at 85% & 50% against the value of the orders for a 3 month rolling period
- This resulted in an immediate extra £700,000 cash flow for the business
- Plus no extra VC equity required & no further management equity dilution
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