Case Studies
Mid Corporate Fast Growth Global Recruitment Company
Growing from £100m to £200m with the fasted growth in the United States – We sourced a £30m global facility, financing not just the invoices but also 90% of their work in progress. This facility meant the client did not need to seek private equity.
Assisted Living & Social Care Developer and Investment Vehicle
The client had a robust pipeline of secured projects and required a funder that would MAX out on the development and on Practicle completion, flip the loan onto a long term commercial mortgage on investment value and NOT BTL value. This allowed the business to re-invest into the next project. First project size was £7m for 32 units.
Growing business wins large new contract
Rather than obtain private equity, ECS assessed the business and raised £5m through a Structured finance loan against current and future income forecasts. A tricky sector, but we managed to obtain a flexible solution conserving cash at the front end and providing an adjusted EBITDA leverage of 2.5 times
London Family owned pub chain
One of the clients pub freehold in central London went on the market. Because this was being sold as a commercial investment, ECS managed to obtain 92% of the purchase price due to the post purchase “marriage value”. Once purchased we flipped the loan used onto a low cost long term commercial mortgage and provided the client with all their contribution back into the business. Total loan size – £3m
Mid Corporate
Recovery. A manufacturer with annual turnover of circa £90m was significantly distressed with large HMRC issues and their incumbent funders not releasing appropriate funding. After significant analysis by ECS, we structured a full ABL solutions across multiple lenders who all had to work together. This resulted in total facilities of £27m which repaid HMRC, Trade Creditor Pressures, The incumbent bankers and provided ample working capital to run the business properly.
Large Single Dwelling Development
A long standing High Street Client, the uncumbent bank restricted the loan amount. I was able to place with a Private Bank at 60% of GDV (£22.5m), at lower fees and lower interest rates.
Complex family trust with multiple mixed assets
This was an extremely complicated case due to the ownership structure and the assets used spread across multiple trust jurisdictions. Obtained a £10m RCF facility to enable them to develop a large single dwelling with no banking monitoring required. This was a classic example of other debt advisory / finance brokerages failing before we succeeded.
Mid Corporate Working Capital Solution
Requirement / Background
Fast growth global business acquired two European companies which needed working capital facilities. Incumbent bankers & other high street banks do not provide such facilities overseas – UK only
Facility type
Confidential Invoice Discounting
Incumbent facility size
£3.65m
Empire Capital Solution
£7m – Split £4m UK ledger, £2m Germany & £1m France
90% advance rate against approved invoices, funded for 120days
Interest Rate
1.85% Above Bank of England Base Rate (Currently 0.10%)
Other Charges
Service Charge Including Bad Debt Insurance 0.15%
Arrangement fee 0.42%
Outcome & Conclusion
Customer released £1.5m of additional working capital on completion. This cash injection has allowed the group to expedite its ambitious forecasts, including some important investments in staff and offices.
The new Bankers allow flexibility of moving limits meaning that the group has minimal exposure to BREXIT, as can now move finance functions and HQ to Europe.
Complex request
Requirement / Background
Client told by other finance brokers that what they want to do isn’t possible:
– Complex ownership structure with a Director who wasn’t a shareholder
– Director not allowed to be on the application form or provide any details
– Shareholders unwilling to provide Personal Guarantee’s
– Multiple Flats on one single freehold
Facility type
Buy to let – property investment
Incumbent facility size
£330,000
Empire Capital Solution
£500,000 – 75% Loan to value, No PG’s, and obtained agreement not to use Director
Interest Rate
4.65% fixed 5 years
Other Charges
Lender Arrangement Fee – 1.75% (added to loan)
Outcome & Conclusion
The incumbent brokerage is well known in the industry, and it wasn’t a straight forward proposition. However ECS conducted an immediate customer appraisal and approached approx. 12 lenders, of which 2 provided exactly what the customer required.
We provided a Bank AIP within 24hrs of being introduced to the client.
ECS simply work smarter and harder, and we got the job done!
HNW Complex ownership, High Value single property
Requirement / Background
Family had multiple assets across various companies and there were recent company liquidations. The ownership structure was complex with over 25 shareholders – none of whom were directors. No Personal or Director’s guarantees on offer. Large value single residential property worth in excess of £15m. Using funds for business purposes – working capital requirements.
Facility type
Bridging finance against sale of property
Incumbent facility size
£0
Empire Capital Solution
£4m including interest & Fee rollup, 12 month term.
We had multiple offers with a number of lenders breaking their published rates policy ending up in a price war and subsequently an amazing deal for the client.
Interest Rate
0.42% per month – Negotiated down from published rates
Other Charges
2% Arrangement fee
Outcome & Conclusion
The client was in no rush and we went down many paths over a lengthy period of time. We kept trying and ultimately provided the client a solution that ticked every box.
Investment
Requirement / Background
Client finished development and let out dozens of flats in one freehold block. Obtained further planning to build another two floors. Ability to develop top floor of flats whilst building occupied. Had a separate company that held a mixed use portfolio.
Facility type
Flexible Investment Loan with Drawdown facility to allow for development
Incumbent facility size
£5.7m (Split lenders – £3.5m & £2.2m)
Empire Capital Solution
– One Lender Solution
– 60% LTV across the board providing Day 1 facility of £8m
– Ability to draw a further £2m post completion
– No Personal or Directors Guarantees
– Interest Only with 1% capital reduction per annum
Interest Rate
3.25% across both proposals
Other Charges
1.50% Arrangement fee
Outcome & Conclusion
Finding a lender to allow construction on a fully occupied building is a challenge. However ECS strong relationship with a Zurich based bank allowed this to happen.
