A national waste management company with an annual turnover exceeding £5 million was facing cashflow challenges that were limiting its ability to scale. The business needed to pay upfront for bulk stock and material purchases from overseas suppliers, with a lead time of three to six weeks before goods arrived. During this period, funds were tied up, and the company typically had to wait until stock was sold before seeing any return on investment.
Client: Aqua Mundus Ltd
Industry: Waste Management
Location: West Midlands
Services Provided:
- Trade Finance
- FX Currency Conversion
- Revolving Credit Facility
The Challenge
Aqua Mundus required a flexible revolving facility that would allow them to purchase stock upfront and repay once they had received payment from their customers. Their existing funding solution relied on traditional cashflow loans with fixed monthly repayments, which placed ongoing strain on working capital.
These rigid terms failed to align with the company’s sales cycle and restricted their ability to invest in stock, scale operations, and capitalise on growth opportunities.
The Solution
We identified that the client’s cashflow was being significantly impacted by the need to make upfront payments for stock and materials, combined with delayed customer receipts. Traditional loan structures were unsuitable, as they required fixed repayments regardless of when income was received.
To resolve this, we arranged a revolving trade finance facility that funded stock purchases while offering flexible repayment terms of up to 120 days, enabling the business to repay once customer invoices had been settled.
During our review, we also uncovered that the client was incurring substantial costs on foreign exchange transactions. Through the same provider, we introduced an FX Money Service, securing more competitive exchange rates and reducing unnecessary fees at source.
To further support cashflow, we structured a hybrid overdraft facility that allowed the client to access funds tied up in outstanding receivables. This gave them immediate liquidity to reinvest in operations and maintain momentum during peak trading periods.
The Results
The tailored funding solution enabled Aqua Mundus to purchase additional stock and materials without the ongoing concern of cashflow pressure. The flexible repayment structure allowed them to focus on growth rather than short-term funding constraints.
By paying interest only on the funds in use, the business significantly improved cost efficiency. The FX Money Service also delivered notable savings on foreign exchange transactions, further strengthening profitability.
Following the success of this funding arrangement, our relationship with the client has continued to develop. We have since supported Aqua Mundus with:
- A commercial mortgage to purchase their business premises
- Additional funding to support asset acquisitions
This ongoing partnership demonstrates our commitment to providing long-term, strategic finance solutions that evolve alongside our clients’ businesses.