£3M invoice finance arranged to support growth and future buy-in

When a director of a fast-growing professional services firm explored selling shares to a trusted colleague, the transaction quickly encountered a challenge. The proposed purchaser had no capital to inject, which significantly limited lender appetite and prevented the deal from progressing.

The opportunity was identified by Millbrook Business Finance, with Sarah Moseley, Associate Sales Manager at Millbrook, working directly with the client. To explore alternative funding options, Sarah introduced the opportunity to Synergy Commercial Finance, bringing in their expertise to help assess the wider funding position.

Rather than focusing solely on the share purchase, Sarah worked collaboratively with Synergy to review the business’s existing funding and identify where improvements could be made.

The challenge

Rapid growth outpacing existing funding 

While reviewing the client’s financial position, it became clear that the business had grown rapidly, increasing turnover from £8m to £12m in the previous year. Despite this strong performance, its existing invoice finance facility had not kept pace.

The funding line was capped and regularly exceeded, resulting in additional charges and limited headroom. This placed unnecessary pressure on cash flow and restricted the business’s ability to support continued growth.

At the same time, the absence of a cash contribution from the incoming shareholder meant the buy-in could not proceed, leaving the client constrained by an inefficient funding structure.

Sarah recognised that these underlying issues needed addressing before the original transaction could be revisited.

The solution

Refinancing invoice finance to unlock headroom 

Working closely with Synergy, Sarah explored alternative funding routes and identified an opportunity to refinance the existing invoice finance facility.

Leveraging Millbrook's lender relationships together with Synergy, Sarah and the team approached HSBC, a lender that had previously supported the client on another venture. A new facility was structured that better reflected the scale, performance, and future ambitions of the business.

The solution delivered by Millbrook and Synergy included:

• A refinance of the existing invoice finance provider
• An increased funding line of £3 million
• Security against the debtor book
• Reduced overall funding costs

HSBC also confirmed that the shareholder buy-in could be reconsidered within six to twelve months, subject to continued strong account conduct and the purchaser being able to demonstrate a cash stake.

What made this different

Looking beyond the original transaction 

Although the original transaction could not be completed immediately, Sarah's proactive approach ensured the client still achieved a meaningful outcome.

By looking beyond the initial brief and challenging the existing funding arrangement, Millbrook identified inefficiencies within the business and helped turn a stalled opportunity into a successful refinance that delivered immediate value.

The outcome

Lower costs, increased funding, and a clear path forward 

For the client:

• Lower funding costs

• Increased headroom

• Scalable funding solution to support continued growth

Since completion, Sarah has continued to support the client on further funding requirements.

If you’d like guidance on securing funding for your next phase of growth, our team is here to help. You can also explore our Complete Guide to Business Finance for more insights.

Ready to see what you could borrow? Check your eligibility below and take the first step towards unlocking your business’s potential.

Check Your Eligibility