An aggregate haulier approached Transition Finance after experiencing significant cash flow challenges when one of its major customers entered administration, leaving a substantial unpaid debt. The knock-on effect resulted in lender defaults and increasing financial pressure, putting the business in a difficult position.
Highlights
✅ £250,000 initial refinance secured against unencumbered assets
✅ £2 million refinance completed, releasing £800,000 in equity
✅ Monthly repayments reduced by 43%
✅ Invoice finance introduced for the first time
✅ Debt protection implemented on future invoices
✅ Improved cash flow and strengthened ability to tender for larger contracts
The Challenge
Following the administration of one of its largest customers, the business was left with a significant unpaid debt that placed considerable strain on cash flow. The resulting financial pressure led to multiple lender defaults, making it increasingly difficult to meet existing commitments while continuing to operate and pursue new opportunities.
The business needed an immediate solution to stabilise its finances, alongside a longer-term funding strategy to improve cash flow and support future growth.
The Solution
We initially refinanced the client’s unencumbered assets, generating £250,000 to bring lender payments up to date and restore a positive bank balance.
Building on this, we arranged a £2 million refinance, unlocking £800,000 in equity while reducing the client’s monthly repayments by 43%, significantly easing pressure on cash flow.
To further strengthen the business, we introduced invoice finance for the first time. This not only improved day-to-day cash flow but also provided debt protection on future invoices and enhanced the company’s ability to tender for larger contracts with greater confidence.
The Outcome
By combining asset refinance with invoice finance, the business was able to overcome the financial impact of losing a major customer.
The funding solution stabilised cash flow, reduced monthly financial commitments, unlocked substantial working capital and provided greater protection against future risks. With a stronger financial position, the business was able to move forward confidently and focus on winning new work and supporting long-term growth.
Could Your Business Benefit from a Similar Solution?
Get in touch with Transition Finance today to discuss your options and discover how we can tailor a funding solution to your business.