Bath-headquartered alternative lender Time Finance has said that a £1.1m asset-based lending (ABL) facility it arranged for an expanding structural steel engineering firm proves how effective such deals can be.
The unnamed firm, based in the South East, was introduced to Time Finance by its financial consultant, Kent-based Open InVoice Finance, which had been brought on board after its existing funder had quit the market.
Time Finance’s ABL team designed the facility to release essential working capital, so giving the firm the necessary headroom to take on new contracts confidently.
The £1.1m facility includes a £650,000 invoice finance facility and £450,000 property loan. By leveraging the assets already within the business, it can access the essential funds needed to take on and finance eight additional contracts which will help it to achieve its goal of generating a £10m turnover this year.
Asset-based lending provides small and medium-sized businesses with an opportunity to drive growth plans and support day-to-day business expenses, such as paying suppliers, HMRC, purchasing stock and materials, and paying employee wages.
By leveraging the assets within the business, including invoices, stock, and property, businesses can overcome cashflow challenges and access essential working capital.
Time Finance business development manager Dave Nurcombe, pictured, said delivering its first asset-based lending facility with Open InVoice Finance was a great achievement.
“It was a real effort, and it was great to see that the dedication and hard work of all those involved did not go unrecognised.,” he added.
“The client’s gratitude was testament to our responsive and flexible approach, as we were able to really get under the skin of the business and give them the confidence that we can be that stable and supportive funder they need to take their business to new heights.”
John Dodsworth of Open InVoice Finance said: “It was a complex deal with tight deadlines requiring a funder who understands the engineering industry, the challenges they commonly face and to provide a bespoke solution that supports their unique goals.
“Time Finance was able to do just that. As a reliable, pro-active, and solution-driven funding provider, I’m pleased to see our client with a committed funder by their side.”
In January Time Finance, which supports 10,000 firms with a diverse range of financial packages including asset, loan and invoice and vehicle finance, announced it had supplied a record high of £150m to businesses following 15 consecutive months of growth in its own lending book.
