Our client is a London based, award-winning, multi-brand fashion distribution business, who we have been working with for over two years.
The company originally contacted us to raise capital to support growth opportunities as they secured exclusive distribution contracts. We talked extensively over the pros and cons of equity versus debt, with our client always hesitant to relinquish too much equity at such a delicate stage in their growth plans.
We had investors lined up to approach, confident that investment could be raised as we had success for another client in a similar market.
One key issue at the time was that their existing debt funders were not able to provide the level of working capital facilities required or the relationship banking approach needed by a fast-growing business. It was decided that we would deal with this element first and put the equity raise on the back burner.
Investment and Outcome
Having led discussions with a select number of alternative lenders, we were able to source a combined invoice finance and trade finance facility on enhanced terms. The result: the business trebled its turnover and significantly improved profit margins.
Impact of Covid-19
The fashion retail sector has been one of the hardest hit by Covid-19, with distributors dealing with clients deferring and cancelling orders.
We were quick to help this client, putting together contingency funding and a compelling funding proposal. We sourced a CBILS loan as well as improved invoice finance and trade finance facilities from a new banking partner. The business is now well positioned to continue trading and supporting its customers through the pandemic.
We will continue to support the directors with further debt and equity fund raising when required.
