A national haulage firm wanted to raise £2.4 million to fund operational expenditure
Our client, a household name in the haulage and logistics industry, operates extensively in various sectors, such as transportation and distribution.
The Group Treasurer of the firm wanted to raise £2.4 million to fund the operational expenditure of their energy and renewables division. The key challenges faced by the company included:
- Raising a large amount of funding at a competitive interest rate
- Ensuring cost-efficiency in the funding arrangement
- Obtaining specific Terms & Conditions tailored to the business's unique requirements
Leveraging asset financing to secure large funding at an agreeable cost
Casey Botterill, a Senior Business Finance Specialist for Millbrook Business Finance, took up the challenge and conceptualised an asset refinance strategy. This approach involved refinancing 50+ assets belonging to the business, including their entire fleet and various owned construction equipment.
The solution addressed several key concerns by:
- Leveraging asset financing to secure large funding at an agreeable cost
- Securing a competitive interest rate
- Introducing a 20% balloon payment to reduce monthly costs effectively
- Tailoring the Terms & Conditions to accommodate the business's unique parameters
£2.4 million of cost-efficient asset refinancing for over 50 assets
With the implementation of Casey's asset refinance solution, the national haulage and logistics firm successfully achieved the following outcomes:
- Raised £2.4 million of cost-efficient asset refinancing for over 50 assets
- Improved their financial position and capacity for operational expenditure in the renewable energy division
- Developed a sustainable funding solution that satisfied the business's specific criteria, including competitive interest rates and custom T&Cs
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