Asset Based & Cashflow Lending
Delivering certainty to transactions
James Cullen explains Asset Based & Cashflow Lending and why it’s relevant to businesses right now.
Who it suits and why now
Businesses bouncing back from a period of turbulence
Businesses currently experiencing an inflexible debt structure
Asset-rich businesses with significant working capital or seasonal requirements
UK headquartered businesses with £2m+ EBITDA
We deal with one team at Investec, for the deal and on an ongoing basis, which is a real differentiator for us.
Client case studies
2M
Allied Glass
Integrity Print
2M
2M Holdings was set up by Mottie Kessler and a business partner in 2003. It provides chemicals and application know-how to a number of industries across many sectors from cosmetics, personal care and pharmaceuticals to automotive, water treatment and emissions reduction. Other chemicals companies cover some areas – but there are few that have such a broad range as 2M.
Allied Glass
Allied Glass is a combination of two Yorkshire high-end specialist spirits bottle makers with a proud history from the 1870s. It moved into the spirits sector in the 1970s, when it built a strong reputation as a manufacturer of difficult-to-do and complex bottles. Allied Glass’ biggest sector today is whisky, which by 2014 was about 60% of its product base.
Integrity Print
Integrity Print was founded in 1917, and while the services it offers have changed hugely over time, it still places a premium on customer service and reliability. Based near Bath, its 380-plus employees run 35 continuous web presses, five label presses and ten high volume laser printers, plus print finishing and mailing equipment.
Polyco Healthline
Downton
TechStream
Polyco Healthline
Our funding structure blends asset based and cashflow lending which supported the merger transaction and provides substantial headroom for ongoing working capital, seasonality and growth requirements. Investec has provided a £44.5m facility to support the merger of BM Polyco and HPC Group, blending receivables and inventory revolvers with cashflow term lending.
Downton
Downton is one of the UK’s leading privately owned logistics firms, with a strong reputation for quality and delivery – providing the flexibility of a local business but with national reach. The Downton family successfully built and developed the business from a single truck to now over 600 trucks and 1,000 trailers over the course of several decades. The majority of customers are blue-chip leading brands across a variety of sectors and include Dyson, Pets at Home, Fever-Tree and AB InBev UK.
TechStream
Our funding structure blends asset based and cashflow lending which supported the merger transaction and provides substantial headroom for ongoing working capital, seasonality and growth requirements. Investec has provided a £44.5m facility to support the merger of BM Polyco and HPC Group, blending receivables and inventory revolvers with cashflow term lending.
Everything starts with a conversation, so get in touch and see how our out of the ordinary thinking could help your business.
What we do
£5m* to c£100m on a bilateral basis
With underwrite/distribute capability for higher amounts.
Asset Based Revolvers
Against receivables and inventory (sometimes also fixed assets) are non-amortising and fund working capital seasonality, as well as core aquisition debt.
Term Loans
Structured against fixed assets and sustainable cashflows fund core debt requirement – undrawn acquisition/capex lines provided as required.
Scenarios
Working capital, refinancing/recapitalisation, growth/acquisition finance (MBO/MBI or combination), buy and build, cash out, shareholder change.
Quantum
Linked to debt serviceability. We are not driven by arbitrary multiples or ratio splits between asset based revolvers and term loans.
Sectors
Chemicals
Food & Drink
Manufacturing & Engineering
Print & Packaging
Recruitment & B2B Services
Transport & Logistics
Wholesale distribution
About us
Asset Based & Cashflow Lending is part of the Growth & Leveraged Finance (G&LF) team. G&LF has been supporting the UK and Europe mid-market by lending to growth businesses for 15+ years. The 30+ strong team offers lending, private debt and capital markets capabilities to its private equity and corporate client base, spanning asset based and cashflow lending, senior secured debt (standalone, club/syndicate loans), RCFs, subordinated debt and minority equity. We originate, structure and provide debt solutions to growth orientated clients with EBITDA typically £2m-£75m EBITDA.
