Industry: Food and Drink
Product: Invoice discounting with Growth and Sustainability Loan Scheme (GSLS)
Facility size: €2.8m
The client
This business was established in 2003 and is a prepared meal provider, offering a range of hot and cold food throughout Ireland.
As a family run company, they specialise in using high-quality ingredients to enhance the nutritional standards of their products. The management team aims to expand the product range to support the health and well-being of their end customers and remain competitive in the sector.
The challenge
After COVID-19, the firm faced cash flow challenges that limited their growth. Disruptions to supply chains and irregular demand impacted their finances, limiting their ability to focus on business expansion during this time.
Even though the organisation has since moved past the obstacles of operating during lockdowns, they needed a substantial injection of funds to spend on research, efficiency and development of premises. With more variety in dietary requirements of their end customers, such as plant based, dairy free and gluten free, they required capital for long-term expansion.
Despite being an existing user of invoice finance the incumbent provider and other lenders were unable to provide funding at the level required. Challenges within food industry often come from the reliance on product freshness and supply chain challenges, which increases the likelihood of disruptions and financial instability.
The solution
Using our knowledge and experience of the sector, Close Brothers Commercial Finance provided a tailored invoice finance facility, alongside a Growth and Sustainability Loan Scheme (GSLS) loan, totalling €2.8m. Invoice discounting allows the company to unlock cash tied up in unpaid invoices, giving them access to additional capital immediately.
The GSLS is a long-term, low-cost scheme to help eligible businesses when investing in their growth and resilience or climate action and environmental sustainability. The scheme is established and offered by the Strategic Banking Corporation of Ireland (SBCI) and benefits from a guarantee that has been provided by the European Investment Bank (EIB) Group, with support from the Department of Enterprise, Trade and Employment (DETE) and the Department of Agriculture, Food and the Marine (DAFM).
By working with the firm to understand their business growth plans, Close Brothers was able to increase the level of funding available using the government loan scheme, alongside their invoice finance solution. The additional headroom has given the company confidence and security to pursue their expansion plans by extending their product range through research and development.
