Navigating challenges for sweet success

The referral

A food manufacturer was referred to Spark by an FX partner through Spark Connect.

The client, a wholesale food business specialising in confectionery, drinks, sweets, and chocolates, was seeking cash to purchase more stock and grow their business.

Initially, they had attempted unsecured business loan options to raise £300,000 but were rejected due to adverse credit and recent borrowings. The client had a business to business invoicing process, which opened up other debt solutions for Spark to work with.

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The process

The business lacked a proper back office, their financial documentation was very disorganised. Spark and the referrer partner had to support the client extensively to organise and submit the correct documentation. Aggravating the issue, the client's accountant left during the process, causing further delays. As a result, anew accountant had to be brought in to progress further.

Despite the challenges, Spark had identified invoice finance as a suitable solution. This approach leveraged the business's outstanding invoices to secure the needed funds, and could overcome the adverse credit and borrowings.

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The result

Spark’s FX Partner wanted to collaborate closely with Spark, to leverage the good relationship they had built with their client. They played a crucial role in maintaining smooth communication during the process and assisting in bridging the gaps caused by the documentation challenges. Spark also leveraged their relationship with the lender to help sort the right documentation, which successfully led to securing a £100,000 invoice finance facility.

This case highlights how Spark’s expertise and collaborative approach with both the partner and the lender overcame significant challenges to secure the right financing solution, enabling the client to grow their business efficiently.

Product overview

Unsecured Business Loan:
Approval is based on the business’s overall financial health, credit worthiness, and ability to repay. It offers flexibility in terms of usage, making it suitable for various business needs. However, adverse credit and recent borrowing can be significant obstacles to securing an offer.

Invoice Finance:
Available for business to business transactions. It allows businesses to borrow money against the amounts due from customers. It provides immediate cash flow based on outstanding invoices on credit terms, which can be crucial for businesses needing to cover expenses without waiting for invoice payments. The strength of this product lies in its reliance on the strength of the client’s debtors rather than the business itself. This makes it a viable option for businesses with strong receivables but other financial challenges.

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Steps to success

• Evaluating Options: Assess various financing options based on the client's unique situation.
• Providing Support: Assist the client in organising and preparing the necessary financial documentation.
• Managing Delays: Efficiently manage delays caused by unforeseen challenges, such as the accountant's departure.
• Collaborating with Partners: Leverage relationships with partners to ensure smooth communication and process flow.
• Swift Execution: Ensure a quick approval process once all documentation is in place.

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