Transaction Date: July 2008
Amount: £1.4m

The company was based in Kent and provided security services to a number of blue chip clients.  It was funded by way of an invoice discounting facility with total exposure of £1m.

The company experienced difficulties due to late payment by certain customers and they were substantially in arrears to the Crown.  A payment plan had been agreed with the Crown however an installment had recently been missed.  The Asset Based Lender had appointed accountants to advise them on the most appropriate course of action.

Cable Finance was approached by the Directors’ advisors after they were advised by the Asset Based Lender that Administrators were to be appointed. Despite meeting with the Directors the next day and offering to refinance in full immediately, Cable Finance was unable to prevent the appointment of Administrators.

Cable Finance negotiated a settlement with the Administrators on behalf of the Directors to purchase the goodwill of the business and the debtors ledger. Cable Finance provided the full funding on a short term basis to support the acquisition. Within one month of the acquisition, the new company had agreed replacement funding with a new Asset Based Lender and the Cable Finance facility was repaid.

Back to case studies