£600K Acquisition Reserve Fund for Waste Management Firm in West London

An established recycling and waste processing business operating across West London needed flexible finance to support growth ambitions. With no existing debt on the balance sheet, the directors wanted to put a funding solution in place that would allow them to act quickly on acquisition opportunities and support strategic expansion as and when opportunities arose.

Clifton Private Finance structured a market-leading £600K invoice discounting facility that gave the business immediate access to capital without disrupting cash flow. By leveraging the strength of the company’s debtor book and carefully positioning a complex ownership structure, we secured a cost-effective facility that now underpins the client’s growth strategy.

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The Challenge

Although the business was financially strong, it had never used debt before and was owned via an Employee Ownership Trust (EOT).

This structure can present challenges for lenders, as there are no individual shareholders providing traditional guarantees.

The client also wanted flexibility rather than fixed borrowing, ensuring they only paid interest on funds actually used.

Additionally, the directors needed a facility that could scale with the business and remain available long-term, rather than a one-off capital injection.

The Solution

We identified invoice discounting as the most efficient and cost-effective route to finance, given the client’s consistently high trade debtor book.

This provided a revolving funding line that could be drawn down and repaid as required, with interest charged only on utilised funds.

To overcome concerns around ownership, we prepared an in-depth credit submission that clearly demonstrated the underlying strength of the business, its stable cash flow, and the strategic value of future acquisitions.

We also outlined how expansion would enhance geographic coverage and strengthen long-term revenue resilience.

The result was a £600,000 invoice discounting facility secured at a market-leading rate of 2.4% over base, with a low 0.21% service fee.

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The Outcome

The facility has given the client a permanent war chest of capital, enabling them to move quickly when opportunities arise without placing strain on working capital.

Since the facility was put in place, the business has already completed an acquisition, validating the original strategy.

By structuring a flexible funding solution rather than a fixed loan, Clifton Private Finance ensured the business remains agile, well-capitalised, and positioned for continued growth.

All despite a non-standard ownership structure that would have limited options elsewhere.