ASSET BASED FINANCE
Engineering Ambition: $10M Asset Based Finance Fuels Growth
Executive Summary
A leading engineering and fabrication business secured a confidential $10 million asset based finance facility from ScotPac. This tailored solution unlocked working capital via receivables and equipment finance—free from restrictive covenants—empowering the business to double revenue, reinvest in growth, and win major defence contracts.
Business background and challenge
A long-established engineering and fabrication business specialising in defence and naval projects faced a pivotal moment for growth following private equity investment. With a robust pipeline of multi-year defence contracts and ambitions to diversify and scale rapidly, the business required significant working capital to fund this expansion.
Traditional bank facilities, constrained by low margins and restrictive covenants, were unable to support their ambitious growth trajectory, prompting the search for a more flexible funding solution.
ScotPac Solution
ScotPac provided a tailored $10 million asset based finance facility, structured to unlock working capital through receivables and equipment finance. The confidential facility addressed founder requirements and was delivered with speed and a deep understanding of operational needs, ensuring the business could seize opportunities as they arose.
The solution was designed without the restrictive covenants typical of traditional bank lending, delivering the flexibility and scale required to support the business’s rapid growth and diversification plans.
Opportunity Created
ScotPac’s asset based finance solution enabled the business to double its revenue runway and reinvest an additional $1 million into growth, supporting the successful tendering of major contracts.
With working capital unlocked precisely when needed, the business was empowered to pursue rapid expansion and deliver on client promises, even in challenging market conditions.
Why ScotPac
The business selected ScotPac for our ability to deliver flexible, covenant-light funding that traditional banks simply couldn’t match—enabling rapid growth and evolving working capital needs as revenue doubled.
The partnership was recommended by the private equity firm, who valued our speed, know-how, and collaborative approach. Our tailored, confidential solution also addressed founder concerns, making us the clear choice for ambitious expansion.
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