The problem
Three unsecured facilities taken during a slow year were consuming most of the monthly surplus. The business was profitable on paper and short of cash every month.
What we did
- Mapped the full debt stack with actual effective rates rather than headline rates
- Modelled the consolidated repayment against real monthly collections
- Prepared a refinance proposal showing the DSCR improvement post-consolidation
- Took the proposal to a lender comfortable with the sector and the ticket size
Outcome
Debt consolidated into a single facility at a materially lower cost. Monthly outgo fell and the unit resumed normal raw material purchasing.