Funding for a company in turnaround
An integrated finance solution assisted a food and beverage company in turnaround
An Australian manufacturing and importing business in the food & beverage industry experienced several years of losses following a mismanaged diversification strategy. The business embarked on a turnaround strategy with a new experienced management team, with return to profitability forecast for FY18.
Despite the Directors injecting loan funds to support cashflow and fund losses, the business’ poor trading performance resulted in the bank withdrawing their support for existing Trade and Debtor finance facilities.
Integrated Finance Solution replaced existing Trade & Debtor Finance facility
$1.5M Debtor Finance + $500,000 Equipment finance facility
70% advance rate based on current financial position, with potential for increase upon proof of turnaround
Approval, due diligence and settlement completed within tight timeframes to ensure continuity of funding