Haulage Business Accelerates Growth Plans by Partnering with Time Finance
Introduction to the Deal
The client is a fourth-generation family-owned business operating across several sectors, including pallet sales, general haulage, recycling, and woodchip sales. They also provide warehousing services, with a significant contract storing finished goods for a well-established breakfast cereal company. The business has a strong history of success with a £5.6m annual turnover. However, it faced cash flow constraints due to growing demand and the challenges of funding warehousing operations through traditional lenders.
Additionally, the business needed to upgrade its fleet of trucks to meet increasing operational demands. Despite a supportive relationship with their existing funder, the client required a more tailored financial solution to unlock new growth opportunities and optimise cash flow.
What We Did
We provided a bespoke Asset Based Lending funding package that included a £1.4m confidential invoice finance (CIF) facility and a £250,000 asset finance facility. Their previous lender couldn't provide the additional funding they needed — that’s where we stepped in. By financing an additional portion of their book focused on warehouse and storage operations, we unlocked approximately £100,000 of extra availability. This vital cash injection provided much-needed support to their working capital, giving them access to funding that was previously out of reach.
Warehousing operations often involve holding significant stock over extended periods, which can be difficult for traditional lenders to finance due to limited security over stored goods. To ensure security, we introduced safeguards such as a Landlord's Waiver and monthly monitoring of rental payments.
The asset finance facility enabled the client to acquire two new HGVs, bolstering their fleet’s capacity and operational efficiency. This was critical to supporting their growth in haulage and maintaining high service standards for their expanding customer base.
Outcome of the Deal
The combined facilities in our ABL package provided our client with immediate cash flow relief and the resources to expand its warehousing operations. Meanwhile, the new trucks improved logistics capabilities, enhancing their operational efficiency.
Our ability to offer a multi-product solution, tailored to the client’s unique needs, was a decisive factor in securing this deal. The partnership positions the business for sustainable growth while supporting their vision of becoming a one-stop shop for sustainable logistics and pallet solutions.
