Close Brothers provides £2m funding to support agricultural group’s growth

Close Brothers Invoice Finance has provided a £2m funding package to a specialist agricultural products group, helping the business refinance existing borrowing arrangements and access additional working capital to support its growth plans.

The group, which operates several businesses supplying customers across the UK and overseas, provides products for agricultural and industrial applications, including silage protection, crop nutrition and animal nutrition.

With demand influenced by seasonal agricultural cycles, the business required a more flexible funding structure to support its day-to-day operations and longer-term growth ambitions.

Its existing finance arrangements no longer provided sufficient funding or flexibility, while the group also wanted to repay an outstanding overdraft and simplify its borrowing.

The refinancing presented additional challenges due to the group’s multiple businesses, international customer base and seasonal fluctuations in working capital requirements.

Close Brothers Invoice Finance structured a £1.75m invoice finance facility to refinance the group’s existing arrangements and increase available liquidity.

The facility enables the business to release funding against unpaid customer invoices, providing access to working capital that can increase alongside sales and accommodate seasonal peaks in demand.

Close Brothers also provided a £250,000 term loan through the Growth Guarantee Scheme (GGS), allowing the group to repay its existing overdraft and consolidate its borrowing arrangements.

The combined £2m funding package provides the agricultural group with a financing structure better aligned to its operations, while creating additional capacity to manage seasonal trading requirements.

According to Close Brothers, the arrangement has strengthened the group’s financial position and provided a more flexible platform for future investment and growth.

The funding will support the business as it continues supplying customers across domestic and international markets, while helping it manage fluctuations in demand and pursue its longer-term expansion plans.