Securing a major refinance and releasing cashflow to support continued trading
This month, we are pleased to share how NGI Finance supported a growing UK business in refinancing several existing high-cost facilities while also securing additional working capital support. By sourcing a lender that took a forward-looking view of the business and placed significant weight on recent management information, we were able to dramatically reduce the client’s monthly repayments and improve overall cashflow flexibility at a critical stage of the company’s development.
The need:
Our client had several existing funding facilities in place, with combined monthly repayments totalling approximately £10,000 per month. While the business remained operationally strong and had recently demonstrated a significant improvement in trading performance, the historic filed accounts did not yet reflect this turnaround.
As a result, the Directors were finding it difficult to access competitive refinance options through traditional routes, despite the business now being in a much healthier position financially.
In addition to reducing the burden of the existing repayments, the client also required an injection of additional working capital to support ongoing trading and maintain good cashflow moving forward.
The directors were therefore seeking a funding solution that would:
- Refinance several existing high-cost facilities
- Significantly reduce monthly repayment commitments
- Improve overall cashflow and liquidity
- Provide additional working capital support
- Work with a forward thinking lender
- Deliver funding quickly and efficiently
The solution:
NGI Finance worked closely with the client to fully understand both the historic challenges and the significant turnaround that had recently taken place within the business.
Rather than relying solely on filed accounts, we presented detailed and up-to-date management information that demonstrated the company’s improved trading position and future affordability. This allowed us to source a lender that was comfortable taking a more commercial and forward-looking approach when assessing the application.
The refinance solution delivered:
- A full refinance of the client’s existing high-cost facilities
- A reduction in monthly repayments from approximately £10,000 to £4,100
- An improvement in monthly cashflow of approximately £5,900
- Additional working capital support to strengthen liquidity
- A lender aligned to the business’s current trading performance
- Completion from proposal through to drawdown within just 5 business days
By restructuring the client’s existing commitments into a far more manageable facility, we were able to significantly improve affordability and release substantial cashflow back into the business, giving the directors greater financial flexibility and confidence moving forward.
Why NGI Finance?
At NGI Finance, we understand that historic accounts do not always tell the full story. Many businesses experience periods of transition, turnaround or rapid change. Securing the right funding partner often depends on presenting the most accurate and current picture of performance.
We take the time to understand the wider commercial position of each client, working closely with lenders that are prepared to assess opportunities based on real-time trading performance and future potential, rather than relying solely on historic financials.
In this case, we were proud to help our client secure a significantly more affordable funding structure, improve monthly cashflow by nearly £6,000 and access additional working capital support. All within an exceptionally fast turnaround timeframe.
For any questions on this success story or to discuss your business finance needs, please call us on 01993 706403 or email enquiries@ngifinance.co.uk.
