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The Challenge
PMD were introduced to a customer in the transport and road haulage sector who had agreed to purchase a local competitor but hadn’t yet secured a funding structure to complete the deal.
Understanding the tight timeline and the acquisition hinging on available cash, we identified that the business needed a fast, cost-effective solution to draw down on cash against the target company.
The Solution
John Platt and the structured finance team stepped in at short notice and introduced a range of funding options. The customer opted for a debt solution secured against the target company’s unpaid invoices.
We were able to structure a £1.5m invoice finance facility, allowing the buyer to inherit and draw down cash from the receivables of the business they were acquiring.
The Result
The acquisition was completed in just two and a half weeks, allowing the customer to expand their operations with a new regional hub in North Manchester.
The facility provided a quicker and more affordable route to funding, helping the customer grow their business without delay.
"Our Structured Finance Team are seeing growing demand from customers for Asset Based Lending Solutions, which are not only cost efficient for the borrower, but often favoured by funders who see a secured lend as a safer credit risk given the recourse back to the working assets of the business they are lending in to. PMD is delighted to continue its long standing partnership with the Road Haulage Association as the preferred commercial finance supplier with an increased focus on M&A in the sector."