Case Study: Funding Critical Machinery to Deliver a New Contract

The Challenge

A UK manufacturing company approached Somo after securing a significant new contract that presented an exciting opportunity for growth. The contract had the potential to increase revenue, strengthen customer relationships and create a platform for future expansion, but there was one major challenge: the business needed to upgrade its machinery immediately to meet production requirements and fulfil the order on time.

Like many growing businesses, the company's cash flow was heavily invested in day-to-day operations, including staffing, materials and existing production commitments. While the business was trading successfully, it did not have sufficient liquid funds available to purchase the required equipment without affecting working capital.

The directors explored traditional funding routes, but the process proved too slow for the timeframe involved. Lengthy application procedures, extensive documentation requirements and delayed decision-making meant that conventional lenders were unlikely to provide funding quickly enough. Selling existing assets to raise capital was also not a viable option, as doing so could have disrupted operations and affected the company's ability to continue servicing existing customers.

The business needed a funding partner that could move quickly and take a broader view of the opportunity.

The Solution

With a property available as security, Somo was able to structure a Secured Business Loan tailored funding solution designed around the needs of the transaction.

Loan Amount	£425,000
Rate	7.9% p.a.
Term	12 months
Security	Property-backed
Completion Time	22 days

By focusing on the overall strength of the deal and the available security, Somo was able to provide a straightforward route to funding and deliver certainty within the required timeframe.

The Outcome

The funding enabled the company to:

• Acquire the machinery required to fulfil the new contract

• Complete the purchase within the necessary timeframe

• Maintain operational cash flow without disrupting the business

• Deliver on customer commitments with confidence

• Increase production capacity for future opportunities

With the upgraded machinery in place, the business successfully fulfilled the contract and strengthened its position within the market. The investment not only supported immediate growth but also provided additional capacity to pursue new opportunities, helping the company build a stronger foundation for future expansion.

By taking a practical approach and acting quickly, Somo helped the borrower unlock a significant growth opportunity that may otherwise have been lost through delays in traditional funding channels.