Trade Finance Case Study

Funding for Management Buy-Out

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Trade Finance for Silverware Supplier

The Business

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.

 

The Result

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.

 

Trade Finance for Ambitious Businesses

If you’ve tried the banks and traditional avenues for funding your business with no success or perhaps you didn’t want to risk your home or other belongings as an asset. Call one of the team here at BFS and we can give you all the options open to you in plain English, with a range of finance options to suit any requirement. Call us now on 0800 047 2389.