For decades, this well-established soft drinks manufacturer relied on sale and HP-back arrangements for their capital expenditure. Their finance director believed that the only way to fund a seven-figure bottling line was to pay upfront and then seek retrospective reimbursement from their bank—a method dictated by their account manager due to the extended staged delivery of the equipment.
This is where a broker’s expertise and creativity can challenge the complacency of traditional banking. Rather than tying up £1.2M in cash, I secured a pre-lease finance facility with a top-tier lender. The lender financed the bottling line over six months, making staged payments directly to the supplier. The client’s only obligation? A minimal monthly peppercorn payment until the facility was commissioned. This approach protected their cash flow and allowed them to reinvest funds elsewhere in the business.
A historic hotel, named after its famous namesake, required a full-scale refurbishment—from top to bottom. However, as a listed building, the project presented unique challenges, with costs spread across multiple suppliers and asset types, from furniture and bathroom fittings to wrought iron railings and tiling.
Rather than dealing with fragmented financing, I arranged a credit line to cover the entire project, categorizing the costs under soft asset finance. This structure allowed the client to fund everything under a single, manageable facility. Additionally, by using a finance lease, the hotel benefited from VAT spreading and accelerated tax relief, improving their cash flow and reducing financial strain throughout the renovation.
Tailoring Repayments to a Bakery’s Cash Flow.
Traditional lenders often offer rigid repayment structures that don’t account for the seasonal fluctuations in revenue many businesses experience. This was the case for a well-known bakery, whose cash flow peaked in winter and slowed in summer. Their bank provided no flexibility, which could have strained their working capital during quieter months.
I structured a seasonal repayment plan that aligned with their revenue cycle—higher repayments during the busy winter months and lower repayments in the summer.
Incremental repayment structure was also explored, where initial repayments were lower in year one and increased gradually as the new equipment drove higher revenue. Both approaches ensure the asset could effectively pay for itself while maintaining financial stability for the business, however, in this case, the seasonal structure worked best.
These businesses didn’t settle for the first finance offer—they explored the market, and I helped them find a better deal. With 50+ specialist equipment lenders at my disposal, I can do the same for you.
Call me on 0330 127 1794 | 07738 471 347.
I have twenty one+ years' experience in arranging external corporate and business finance for companies of all sizes and stages of their lifecycle.
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