Funding for Increased Working Capital Requirement



Increased working capital was required to fund the gap for a new multi million contract against renewable fuels.


The client is a UK subsidiary of an American parent company, and whilst having traded for a good number of years, the balance sheet was not strong enough to support a loan of this amount – the UK Directors are not shareholders an therefore were Director Guarantee averse.


We had a very, very limited funder space to work in, but had established that the client had an element of export turnover which qualified them for a General Export Finance agreement – the specialist funder approved a deal with the         stipulation of Director Guarantee (DG) support – to mitigate this for the Director, we secured specific DG insurance, paid for by the business, to cover up to 85% of the loan balance at any time.