The Challenge
PMD Business Finance were introduced to a well-established business operating in the leisure and hospitality sector who required funding to bridge a cashflow deficit during their off-season trading period. The customer originally enquired about a bridging loan, however given potential complexities with security, timescales and seasonality of the business, PMD immediately recognised that this may not be the most suitable funding solution for the business.
The Solution
Isaac Cambridge, Business Development Manager took the time to understand the business and how their operations changed based on its annual cycle. By doing this, Isaac identified that a merchant cash advance facility would be more appropriate for the customer, given that with a cash advance repayments are made in line with card transactions, such as payments made via chip and pin, card terminals (both in person and online) as opposed to fixed monthly instalments. PMD identified a lender operating within the alternative funding market and were able to secure a £510k cash advance facility for the customer, with the comfort of further funding being made available if required in the future.
The Result
The customer was able to inject a large lump sum of working capital into their business, with funds being secured in a matter of days. This funding has allowed the business to maintain financial stability all year round and relieve cashflow pressures during off-peak periods.
“Having recently joined PMD, it has been excellent to work alongside seasoned finance professionals. To single one out in particular, Chris Lever, Head of Cash Advances and Loans. With his knowledge and my drive to support my customers, I was thrilled to be able to work alongside such a well-established business and support them with their funding requirements.”