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Thanks to our many years of experience and our network of business specialists, Clarke Bell can provide a wide range of solutions for businesses that are facing financial issues.

In this case, an Accountant referred one of their clients to us because their client was facing a tricky financial situation. The company was experiencing cash flow issues and the bank had insisted on an independent Accountant’s report by a firm of Insolvency Practitioners. This is often a pre-curser to the bank appointing Administrators.

Complex funding solution found

The company was a specialist contractor with a complex funding requirement. The business was already funded through a mainstream bank, with borrowings of approximately £900,000. However, the director now wanted to exit the bank entirely due to a breakdown in their relationship.

The funding consisted of:

  • £500,000 Confidential Invoice Discounting (CID) line
  • £200,000 business loan
  • £200,000 overdraft.

The deal was a complicated one because of the large sums involved and because the client wanted to exit the banking facilities entirely. This meant that new funders had to be sourced for all three funding lines.

We spoke to one of our contacts who was experienced in dealing with matters of this monetary size and complexity, and we were able to help the business source all the funds it needed.

All three incoming funders had to time the transfers to perfection to ensure that they were all executed at the same time. The solutions that were found were:

  • a Contractual Invoice Finance facility which was better suited and more supportive for the business
  • a different mainstream bank who provided a £100,000 loan to pay off part of the overdraft
  • the remaining balance of the loan was raised through the new contractual facility (funding contractual debt which was previously not funded)
  • the business loan was paid off via a mortgage against an unencumbered business premises.

The director was very happy with how the process was managed to achieve his desired outcome.

A great network of expert contacts

Clarke Bell have built up a fantastic network of experts who are able to provide a wide range of financial solutions for companies both large and small.

This is a great example of how we can help companies deal with financial issues – even where the solution is a non-insolvency one.

For more details about how we could help one of your clients, give us a call on 0161 907 4044 or email [email protected]

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