Almost all businesses need to go through periodic refinancing exercises, whether replacing bank facilities, renewing overdrafts, obtaining bank term loans, EFG loan guarantees scheme loans, factoring/ invoice discounting or capital expenditure requirements. Raising working capital is an important plank in any restructuring plan.
Where a company has encountered a significant downturn event or is under pressure, the relationships with funders can be strained or breaking down. As the current market for business changes and evolves almost daily, the ability to source new working capital facilities can be limited. KSA Group has helped companies raise working capital for many years and have strong connections with all types of financiers and private investors who are not afraid of CVAs or insolvency. Cheswick Capital can provide turnaround finance if required.
Our contacts have the ability to move quickly where a company’s relationship with its funders have been strained or broken down. We can arrange a replacement funder in 2-3 days if required. This exits a bank from a company it no longer wishes to work with and provides relief for distressed directors. We work with 5 private equity funds who can lift out existing banks with lends of up to £100m. Coupled with what we call Plan “A” or informal debt restructure with HMRC and major creditors this can be a powerful way to AVOID insolvency techniques such as pre-pack administration.
KSA Group is particularly keen to promote the use of rescue tools in insolvency as opposed to burial! Many people do not understand that the first aim of administration is rescue and that a company voluntary arrangement is a rescue tool that does work if done properly.