Clothing Manufacturer – Replacement Finance Facility
Moorfields Commercial Finance successfully assisted an East Midlands–based knitwear manufacturer in securing replacement funding facilities following the withdrawal of support from their incumbent finance provider. The £400,000 facility was structured through invoice finance with selected bad debt protection, providing the business with improved working capital flexibility and enhanced security.
Objectives
- Source replacement funding after the incumbent lender withdrew support due to a change in credit profile.
- Maintain cash flow stability to support ongoing operations and fulfil customer orders.
- Identify a flexible funding partner capable of understanding the manufacturing sector’s working capital cycle.
Moorfields’ Actions
- Conducted a comprehensive review of the company’s financial position, debtors, and funding requirements.
- Engaged with a range of funders to identify the most suitable facility structure for the client’s needs.
- Negotiated a new invoice finance facility including selective bad debt protection to safeguard against non-payment of invoices and debtor insolvency.
- Worked closely with management and the new lender to streamline the transition and avoid disruption to cash flow.
Results
- £400,000 invoice finance facility secured with enhanced flexibility and protection.
- Continuity of funding achieved, allowing the business to maintain operations and meet customer demand.
- Improved cash flow management through a tailored facility aligned with manufacturing cycles.
- Positive long-term funding relationship established, supporting the business’s growth and stability.
