Case Studies

A selection of some recent cases:

MCR Help Temporary Recruitment Company in Raising Company Finance by Invoice Discounting

We were asked to advise a temporary recruitment company that placed IT consultants into large UK corporates on means of raising company finance. The business’s turnover was in the region of £4m. It had problems securing adequate credit limits due to concentration issues. This meant its future growth prospects were being suppressed.

We entered into open discussions with the existing funder but it was clear that they could not alter their stance. Accordingly, in order for the Company to continue to develop it became necessary to seek alternative funders who could reassess the position. We were successful in introducing a new lender. The new funding line was slightly more expensive but it allowed access to additional funding. The growth and prosperity of the business has by far out weighed any extra charges for raising company finance.

MCR Help Printing Company With Asset Based Financing Advice

We were asked by a £5m turnover printing business to assist them in raising company finance to help them fund the acquisition of major new printing press.

The business was coming through a difficult period of trade. Everything looked positive in terms of recent trading results and future order book but their bankers given their knowledge of past difficulties were reluctant to advance further monies. The finance director had tried several high street banks who delivered a similar response.

We were able to help the business with asset based financing advice, which helped them to identify a secondary financier. Although not as competitive on rates, this financier helped the business in raising company finance, which enabled it to remain on its growth path.

MCR Advise Import Company on Trade Finance and Factoring Invoices

We were introduced to a former senior executive of a well known retailer who had very strong contacts in the clothing industry. These potential customers trusted his expertise at sourcing products, so he had orders and oversees suppliers but lacked adequate funding.

We were able to introduce him to an experienced trade finance house who could verify his credentials. The UK based customers were large well known corporates and through industry connections the funder was able to obtain testimonials for the overseas supplies. Given confidence in the transaction they agreed a trade finance line backed by the factoring of invoices.

The facility helped to kick start the business which from a standing start achieved sales of £650,000 in its first year.

MCR Help Precision Engineering in Raising Company Finance With a Bridging Loan

We are often introduced to businesses that have suffered a misfortune in trading which is often difficult for management to anticipate. This can often leave businesses with a shortfall as they struggle in raising company finance.

That was the case here when this engineering business with turnover of £2.5m ran into trouble. It was hit with a large bad debt from what appeared to be a strong performing customer. Unfortunately there was no credit insurance in place and the business was suddenly in a vulnerable position.

Through our sister company, MCR Business Consulting, they were able to help the business stabilise its cash flow and agree payment plans with trade creditors and HM Revenue & Customs whilst we reviewed available financing options.

The assets of the business were fully utilised as security for existing Bank facilities and the bad debt had in fact caused problems for the company’s factoring company because its security in the form of debtors had been weakened by the bad debt.

The underlying trading performance of the business remained strong with very consistent sales, which gave the managing director and major shareholder the confidence to use the trading premises which he owned personally as security for a bridging loan as a means of raising company finance. The forecasts we prepared on his behalf showed a funding requirement for up to ten months until a number of major orders were completed. The support of creditors and the raising of company finance in tandem with an equally supportive factoring company provided all the necessary ingredients to help secure the future of the business.