£8.5M Structured Finance Package for High-Growth Recycling Business

A fast-growing national recycling and waste management company, projected to exceed £50M in annual revenue within the next two years, needed a funding structure that could match their rapid expansion.

Clifton Private Finance secured an asset-based lending (ABL) solution that a combined a confidential invoice discounting facility, an asset finance line of credit, and a term loan. This provided an £8.5M package for the client to fulfil new contracts, grow their national brand, and fuel sustainable growth.

The Scenario

Our client, a dynamic and fast-growing recycling and waste management company specialising in soft FM services, had recently secured several high-value corporate contracts. With revenue projected to exceed £50M within two years, they needed a funding solution that could scale in step with their rapid growth.

In addition, the client had been using a disclosed factoring facility, which was costly and created potential reputational risks.

They required:

• A confidential invoice discounting facility to release essential working capital
• An asset finance line of credit for capital expenditure to fulfil larger contracts
• A term loan to provide investment towards essential growth capital

The Solution

The final £8.5M package was structured to include:

• £3M confidential invoice discounting — replacing the disclosed factoring facility to cut costs and remove reputational risks, while securing the release of 85% of their unpaid invoice values. This revolving credit facility will grow directly in line with increasing revenues
• £3M asset finance credit line — this will allow for the deployment of various assets that are required to fulfil larger contracts, whilst an initial limit was approved for the client this can be increased in line with growth

As part of the debt advisory process, we identified that our client had significant intellectual property they didn’t know they owned, and hadn’t been realised on their balance sheet.

We guided them through a formal valuation process, which revealed a £6.2M valuation. We were then able to leverage this IP to unlock further lending:

• £2.5M term loan secured against the IP — our client was able to reinvest this into further development of their proprietary technology, which will strengthen their balance sheet and companies valuation.

Furthermore, we identified ongoing with our client who has sole distribution rights to a specialist asset manufactured here in the UK.

Through this partnership we are now able to deliver finance for our clients’ clients when they are looking to acquire these assets.

The Outcome

With a structured finance package tailored to their unique needs, the client now has the flexibility, capacity, and liquidity to deliver on major contracts and continue expanding their market share.

Sole distribution rights on their key product have also been supported by the funding, enabling them to act as both operator and finance partner for asset distribution.

At Clifton Private Finance, we always take a relationship building approach with ours clients. We want to become a valuable partner for our clients, offering ongoing support year after year.

If your business is scaling quickly and your current facilities can’t keep up, our team can potentially identify untapped value and secure the funding you need to grow without compromise.