.png)
The Group sought £90 million to fund operations and ambitious growth, including a strategic acquisition.
The Group worked with Gardenia Technologies to design and run a bespoke Early Pay Receivables Finance Programme, which delivered a global receivables financing programme at highly competitive rates with zero impact on its existing debt covenants.
Challenge
The Group operated in multiple jurisdictions and had several preexisting financing agreements. They needed a solution to work with their existing debt covenants, minimise disruptions to their operations, and use their complex global receivables data. Challenges included:
- Complex data landscape with receivables data scattered across 5 ERPs.
- Pre-existing debt-covenants requiring new financing to comply
- Immediate needs for funding and need for stable multi-year funding.
- Limited bandwidth for operational change
Solution
Gardenia designed and implemented a bespoke Early Pay Receivables Finance Programme. We combined our proprietary data analytics platform with financial expertise and a network of global funders to deliver tailored financing solutions backed by the world's leading financial institutions.
The programme was structured with several innovative features, including a bankruptcy-remote SPE to enable off-balance sheet treatment, non-recourse protection against defaults, and accommodated non-assignable receivables through a trust structure.
Once structured, the programme was managed automatically through the Gardenia platform.
Results
Financial outcomes
- £90 million non-recourse, receivables financing facility
- 90% advance rate, with 2.25% interest
- Committed facility with 3-year term and 1-year extension option
- Zero impact on existing debt covenants
- Global portfolio coverage (UK, USA, EMEA, Australia, Japan, Hong Kong)
Operational benefits
- Unchanged payment processes and no new bank accounts
- Undisclosed facility maintaining client relationships
- Algorithmic daily invoice verification and analysis, and next-day cash disbursements
- Real-time monitoring and reporting
