Our client within the automotive sector was confronted with the challenge of securing enough working capital to purchase stock on a revolving basis. This was due to the expensive nature of automotive parts and vehicles, fluctuating demand influenced by economic cycles and seasonal trends, complications within global supply chains, and the gap between purchasing stock, production, and sales realisation.

To address these challenges, a Revolving Credit Facility (RCF) was provided as the m,ost effective solution to the current faced challenges.

This flexible financing solution enables the borrower to draw down, repay, and redraw funds up to a certain limit during the term of the agreement. The facility is prioritised over other debts in case of default and is secured against the company's assets, reducing the lender's risk. 

The RCF was designed to offer flexibility in cash flow management, cost efficiency compared to other short-term financing options, security for the lender through asset backing, and enhanced purchasing power for the client to secure better terms with suppliers and manage inventory efficiently.