Working capital unlocked to fuel a major production uplift
Industry: Agriculture
Product: Refinance
Facility size: 750,000 euros
The client
This long‑established waste and horticulture operator serving the UK & Ireland supplies growing media, such as peat, to garden centres and national retailers. Having diversified from water‑treatment recycling into horticulture, the business has grown significantly in recent years, winning new contracts and expanding its European footprint. Operations are highly automated, with new bagging technology increasing daily output to meet rising order volumes.
The firm has worked with Close Brothers Commercial Finance for several years, using hire purchase (HP) to acquire essential kit, from trailers and forklifts to wood refiners, without putting pressure on day‑to‑day cash flow. In an asset‑intensive sector like agriculture, where equipment is costly but critical to scale, the right funding can be genuinely transformative.
The challenge
The client had paid upfront for two pieces of equipment which had been integral in increasing the volume of orders since August 2025. While this boosted capacity, it tied up capital just as the firm pivoted from international to higher‑margin UK & EU customers.
Their recent growth, and confirmation of larger retail orders, created a need for increased materials. The priority was to quickly unlock liquidity, without disrupting production, to capitalise on new, high‑quality contracts.
The solution
Close Brothers Commercial Finance structured a €750,000 refinance using sale & hire purchase back with fixed repayments, linked to the client's 3-year plan. This is where a funder buys an asset you already own and hires it back to you under hire purchase (HP). You receive a cash injection up front, continue using the equipment without interruption, and regain ownership at the end of the term.
The client kept full use of the asset throughout, freeing cash locked in the machinery to fund materials for confirmed orders.
The result
Essential working capital has been unlocked to fund materials and packaging, meaning the firm could scale production immediately using the existing bagging lines, matching higher retailer demand without delays.
The released liquidity supported the strategic move to UK & EU contracts, with stronger visibility on volumes and pricing. This additional headroom has given management a kick-start in their 3-year growth plans.
If you’re looking to release capital, fund new equipment, or support the next stage of your growth, our specialists are here to help. Get in touch with Close Brothers Commercial Finance to discuss tailored funding options that keep your business moving forward.
