Product: Asset based lending (ABL)
Facility size: €5,500,000
Business need: Obtain funding to support a complex purchasing cycle
Elements of the deal: Invoice discounting, stock & property finance
One of Ireland’s largest clothing distributors came to Close Brothers due to concerns with their provider at the time. Unhappy with regular technical issues and fears that their lender would not be staying in Ireland, they needed to find a new facility. The ability to offer a totally bespoke solution, combined with the dedication to set up the facility quickly, won Close Brothers the customer’s confidence.
A €3.2m invoice discounting facility was put in place and split across two businesses. It swiftly evolved into a €5.5m full asset based lending (ABL) deal, comprising invoice discounting along with loans based on the value of their property and stock. The client had a very complex purchasing cycle and Close Brothers was able to offer an innovative solution to significantly improve their cash flow and enable substantial business growth.
The reliable IDeal™ online discounting system expelled any previous technical worries while capital generated from the ABL facility also cleared the customer’s outstanding overdraft.