The Challenge
Introduced by one of our professional partners, PMD advised a plant hire and waste management business on a refinancing exercise. The primary goal was to introduce new liquidity into the business and reschedule the heavy burden of short-term loan repayments. PMD’s Structured Finance Team met with the client to carry out our complimentary benchmarking service. We were able to identify several areas where we could raise money and reduce costs.
The Solution
PMD identified an opportunity to refinance some of the business’s existing assets on enhanced terms. This included vehicles and associated equipment, which had considerable untapped value. By rescheduling the asset finance to release equity, PMD was able to not only introduce cash into the business, but also refinance over a longer term, significantly reducing the client’s monthly repayments.
At the same time, it was clear that the company’s current invoice finance facility was restricting ongoing working capital and the existing funder’s security requirements were viewed to be onerous. Working closely with the client’s management team, PMD secured a new £2.25m confidential invoice finance facility that provided an enhanced pre-payment and lower monthly service fees. The security requirements were simplified, resulting in less personal risk for the owner.
The Result
As part of the benchmarking service, PMD also assisted the business with a new Credit Insurance policy. This provided the client with the confidence to trade openly with their customers, whilst providing further protection against bad debt loss.
With PMD’s support, the client benefited from an immediate cash injection, reduced debt payments, has a more appropriate invoice finance facility and mitigated future risks with insurance cover. PMD continues to work with the company to review ongoing growth plans across property, asset purchases and working capital.