Negotiations with HMRC
Go Back Negotiations with HMRC Sector: Family-owned private hire coach/transport business (UK) Funding Requirement: £ Unknown at outset Structured Funding Solution The Challenge A family-owned business operating in the private hire coach/transport sector had come under severe pressure from several creditors, in particular HM Revenue & Customs, who had run out of patience and excuses and had already presented a winding-up petition which was due to be heard within 10 days. On becoming aware of this, the company’s accountants refused to act and formally terminated their ties with the company. When the 17-year-old son of the founding Director of the business called us, we had a simple decision to make. As the winding-up petition was only 6 days away, we either walked away or tried to help. Having listened to what the family had been through over the months and what they had dealt with on their own with little help from their accountants and the bank, we made a decision to step in and help. Eight months before this, the founding director of the business had unexpectedly suffered a heart attack and died, leaving his wife and two teenage sons, 17 and 21, to run the business. Although the encumbered accountants had prepared a ‘business plan’ together with financial forecasts, unfortunately, all this did was borrow money against assets to pay off HMRC and place the company into a corporate Voluntary arrangement to attempt to make a deal with trade creditors. The business, whilst small, had some good and loyal staff who had been there for over 14 years and were committed to the family and the business. Our Approach Step 1: Business Review and Understanding We went to the business the next day and sat with the family and staff and conducted a detailed review of the company’s financial position, asset base, customers, and operational requirements. We worked closely with management to understand the immediate and long-term commercial objectives. Step 2: Credit & Risk Review We assessed risk, security and repayment structures, focusing on sustainability rather than short-term solutions. Step 3: Solution We used our network of contacts and were able to identify a competitive business in the locality, which was a perfect fit to allow the business to consolidate its operating costs and simultaneously increase its customer base and revenue with an additional £350,000 of sales. We contacted the competitive business and, within a very short period of time, we were able to negotiate a purchase of that business, which we provided the capital to complete. Consolidating some of the management from the acquired business into the company, we were able to not only bring sales and management but also plant, equipment and vehicles to provide the company with a better and more profitable platform to move forward. We contacted HMRC and again, through our network, were able to negotiate an adjournment of the winding-up petition together with a repayment plan, which again we stepped in to provide capital for. Our approach was based on a long-term solution designed to refinance existing liabilities and inject immediate liquidity to stabilise the company. Step 4: Execution & Funding Despite the timeline of the transaction, we were able to complete our funding within 12 days, ensuring the survival and expansion of the company. Step 5: Ongoing Support Post-completion, we continued to support the business with strategic oversight and management support. Our ongoing advisory team’s role helped management to integrate the two businesses and provide a smooth and clear transition. The Outcome £1.4m structured funding facility completed Immediate help and support Refinancing of legacy banking debt Business positioned for sustainable growth and future strategic opportunities
Time-Sensitive Funding for UK Engineering Company
Go Back Time-Sensitive Funding for UK Engineering Company Sector: Specialist Engineering (UK) Funding Requirement: £1.2m Structured Funding Solution The Challenge An engineering company with 23 years of trading, an annual turnover of £9 million, an experienced management team, plant and machinery, and borrowings of £4.3 million, was unable to meet its debts as they fell due and was technically insolvent. A detailed review of the company’s financial position, asset base, debtor book, and operational requirements to move forward was completed in less than 48 hours. Using our in-house restructuring lawyers and an insolvency firm on our panel of experts, we were able to establish a turnaround plan, which was executed immediately. Our Approach The business was placed into administration as a protection method that would, in time, be converted into a Voluntary Arrangement in order to ensure immediate protection for the business, the continuity of suppliers and retention of customers. We helped the management establish a new trading company, and within a matter of days, the existing management and workforce were trading a new Limited company. We structured a Turnaround solution including: Short-term bridging finance to pay suppliers for new stock We purchased the freehold and mortgaged it back to the new trading company on a 25-year term We took out Lloyds Bank borrowings and released the directors from their personal guarantees secured against a 30% equity investment in the new Limited company We introduced a new line of credit and refinanced some of the plant and equipment at more favourable terms We helped the management by giving them additional management and operational support The Outcome The cost of borrowing in the new structure was reduced by 43% The new Limited company was able to retain 100% of the existing clients and has enough line of credit to increase sales by a further £2.2m The CVA successfully returned 80% to trade creditors, and the new Limited company was able to continue to work with 93% of the existing suppliers With a clear structure and adequate funding, the business is on track to achieve sales of £20 million over the next couple of years Our support and expertise enabled the management to capitalise on a time-sensitive crisis and turn the business around with a solid footing to grow Why Sense Capital Solutions Sense Capital Solutions specializes in providing bespoke funding and advisory solutions for businesses operating in complex, distressed, or time-sensitive situations. By unlocking liquidity where traditional lenders cannot, we enable management teams and shareholders to focus on continuity, recovery, and growth.
Supporting Growth Challenge
Go Back Supporting Growth Challenge Sector: Specialist Manufacturing (UK) Funding Requirement: £3.5m Structured Funding Solution The Challenge A UK-based SME operating within the manufacturing and distribution sector faced increasing liquidity pressure following a period of rapid growth. Although the business had a strong order book and valuable asset base, cash flow became strained due to extended debtor payment terms and legacy banking facilities that were no longer fit for purpose. HSBC was unable and unwilling to provide additional funding or flexibility due to restrictive credit policies, placing the business at risk of breaching covenants and limiting its ability to fulfil new contracts. The shareholders required a fast, discreet funding solution that would stabilize working capital, refinance existing debt, and provide headroom for continued growth without disrupting daily operations. Our Approach Step 1: Business Review and Understanding We conducted a confidential and detailed review of the company’s financial position, asset base, debtor book, and operational requirements. We worked closely with management to understand the commercial objectives, time pressures, and potential exit strategies. Step 2: Credit & Risk Review We assessed risk, security and repayment structures, focusing on sustainability rather than short-term solutions. Step 3: Solution We structured a bespoke funding package combining: Asset-backed lending secured against plant and machinery Debtor book funding to unlock cash tied up in receivables A revolving credit facility aligned with seasonal cash flow cycles The solution was designed to refinance existing liabilities, inject immediate liquidity, and provide ongoing flexibility. Step 4: Execution & Funding Despite the complexity of the transaction, we completed documentation and released funds ahead of the client’s anticipated timeline, ensuring uninterrupted trading and supplier confidence. Step 5: Ongoing Support Post-completion, we continued to support the business with strategic oversight, monitoring, and commercial guidance. Our ongoing advisory team’s role helped management optimise cash flow, improve financial visibility, and plan for future expansion. The Outcome £3.5m structured funding facility completed Immediate stabilisation of cash flow Refinancing of legacy banking debt Improved liquidity and operational flexibility Business positioned for sustainable growth and future strategic opportunities The client retained full operational control while benefiting from our input, and we were able to demonstrate how to think creatively, move decisively, and support the business.
Professional Services Business During Rapid Expansion
Go Back Professional Services Business During Rapid Expansion Sector: Professional Services (UK) Funding Requirement: £1.8m Working Capital & Refinancing Facility The Challenge A UK-based professional services firm experienced rapid growth following the acquisition of several large corporate contracts. While revenue increased significantly, cash flow came under pressure due to long billing cycles and delayed client payments. The business relied heavily on secured overdraft facilities, which became increasingly restrictive as sales increased. The directors needed immediate working capital support to stabilize cash flow, refinance short-term liabilities, and continue servicing new client without disruption. Barclays were unwilling to increase exposure due to the firm’s limited tangible asset base. Our Approach After conducting a confidential review of the firm’s financial performance, contract structure, and debtor profile. Our credit team focused on the quality and predictability of receivables rather than asset-heavy security. We structured a tailored funding solution comprising: Debtor book funding to release cash tied up in unpaid invoices Partial refinancing of existing short-term liabilities Funds were deployed quickly, providing immediate liquidity and restoring financial flexibility. The Outcome £1.8m funding facility completed Improved cash flow visibility and predictability Reduced reliance on borrowing Ability to service new contracts without operational strain The business regained stability and continued scaling with confidence, supported by ongoing commercial guidance.