£2.5M Trade Finance Facility for Major Hair Products Brand

A leading UK hair products company with over £20M turnover needed a finance solution to manage long stock cycles and fuel growth without exhausting cash reserves.

Clifton Private Finance secured a £2.5M trade finance facility, providing the flexibility to purchase stock well in advance and keep cash flow strong throughout the year.

The Scenario

Our client is a major UK-based hair products company, with significant e-commerce sales, presence in leading high street retailers, and contracts in Europe. Despite strong turnover exceeding £20M, the business faced cash flow challenges due to its long stock cycle.

With a six-month lead time on stock purchases, they were forced to commit £500K at a time to orders, tying up cash for months before seeing a return. This cycle meant they were repeatedly exhausting reserves before being able to place the next order, slowing growth potential.

In order to find the right solution for the client, we needed to take into account the business’ debt history and stability, as well as providing lenders with a comprehensive understanding of their:

• Supply chain
• Product lifecycle
• Competitor landscape
• Cash flow projections

The Solution

We secured a £2.5M annual trade finance facility, renewed each year following a fresh underwriting process to adjust limits as needed. The facility allows the business to draw down funds as required, with interest charged at 6.5% on the amount used.

This flexible approach ensures they can order stock well in advance without depleting working capital, keeping the business in a strong cash position throughout the year.

The Outcome

The facility has eliminated the strain of long stock cycles, allowing the client to focus on growth and expansion without compromising liquidity. Indicative terms were secured within 48 hours, and the facility was completed in 10 weeks from initial enquiry to payout.

If your business is restricted by stock cycles or cash flow pressures, we can design flexible trade finance solutions to keep operations moving and growth on track.