Business Finance
Requirement / Background
Fast growth global business acquired two European companies which needed working capital facilities. Incumbent bankers & other high street banks do not provide such facilities overseas – UK only
Facility type
Confidential Invoice Discounting
Incumbent facility size
£3.65m
Empire Capital Solution
£7m – Split £4m UK ledger, £2m Germany & £1m France
90% advance rate against approved invoices, funded for 120days
Interest Rate
1.85% Above Bank of England Base Rate (Currently 0.10%)
Other Charges
Service Charge Including Bad Debt Insurance 0.15%
Arrangement fee 0.42%
Outcome & Conclusion
Customer released £1.5m of additional working capital on completion. This cash injection has allowed the group to expedite its ambitious forecasts, including some important investments in staff and offices.
The new Bankers allow flexibility of moving limits meaning that the group has minimal exposure to BREXIT, as can now move finance functions and HQ to Europe.