Nucleus Commercial Finance Ltd recently provided a £1.2m ID facility to a print finishing business.
- The borrower faced various challenges to take the business forward, including: The borrower was under severe cash pressure and the existing funder was not willing to support the business due to increasing creditor pressure
- To turnaround the performance, the borrower needed to acquire an additional business, complementing the existing product range.
- The borrower needed corporate restructing and legal advice on how to acquire the new business and satisfy the creditors of the existing business
The business had discussed obtaining the facility with banks and independent factoring/ABL companies, but none were prepared to structure a workable solution. Nucleus was able to structure a deal within 1 week by working closely with the introducer and all other involved parties. The structure included:
- The transfer of the target business from its incumbent invoice finance provider to Nucleus
- A pre-liquidation sale of assets after due process and valuation, from the original business to the target acquisition
- The transfer of the book debt from the original business to Nucleus
- New asset finance provider, willing to advance an additional £200k against P&M to assist with the purchase price
- £120k from equity investor to assist with the purchase price