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When a metal recycling plant found itself weighed down by expensive debt and a need for additional capital, they turned to Millbrook for a solution.
In this client success story, we explore how a bespoke combination of secured business loans and refinance—totalling £4.2 million—enabled the company to consolidate high-interest liabilities, free up vital cash flow, and lay a more robust foundation for sustained growth.
Client Background
Leading the Future of Metals
Our client is a leading UK-based specialist in metal solutions, known for manufacturing and supplying high-quality products and expert guidance to clients across various industries. With an emphasis on innovation and cutting-edge technology, their operations revolve around delivering exceptional quality and reliable service.
Seb, the owner of the recycling arm and two of the largest aluminium recycling sites in the UK, drives much of this innovation and growth. His businesses boast a combined turnover of £14 million, reflecting the scale of their industry footprint. However, due to existing debt from a high-interest lender, cash flow constraints began to limit further expansion and day-to-day stability.
- £14m turnover for the combined recycling operations
- Two major sites serving the UK aluminium recycling sector
- Directors with extensive industry backgrounds in metallurgy, engineering, and supply chain
- Focus on innovation and advanced processes for high-quality metal solutions
The Challenge
Consolidating Existing Debts Into Manageable Payments
Despite substantial assets—including specialised plant machinery and valuable property—Seb faced mounting pressure from a previous high-interest finance agreement. He was eager to secure a favourable refinance package of around £3 million to consolidate these debts, plus additional funds to bolster cash flow.
- Existing high-interest debt limiting cash flow and hindering growth
- Needed a combined £4.2 million to refinance and cover working capital
- Valuable collateral available (machinery and property) but tricky to leverage
The Solution
Asset-Based Refinance for a Swift Fundraising
Millbrook recognised that Seb’s extensive plant machinery and ownership of two on-site properties provided ideal security for a refinance deal. Our team collaborated with him to structure a £4.2 million secured facility, allowing the business to pay off the high-interest debt while also unlocking extra capital for everyday cash flow.
By leveraging the tangible value in the company’s existing assets, we were able to minimise the need for burdensome personal guarantees. Within just four weeks, the entire refinance package was arranged—and remarkably, formal approval took only one week. This swift turnaround showcased Millbrook’s commitment to delivering bespoke, efficient financial solutions.
Benefits of Secured Business Loans
Secured business loans tap into the value of a company’s physical assets—such as property, equipment, or inventory—to provide access to larger amounts of capital and more favourable terms. Some key benefits include:
- Lower Interest Rates: Because the loan is backed by collateral, lenders often offer more competitive rates.
- Higher Borrowing Limit: Having tangible assets to secure the loan can translate into a significantly larger facility.
- Longer Repayment Periods: Collateralised lending typically allows for extended repayment schedules.
- Greater Eligibility: Even businesses with limited credit history can qualify by demonstrating strong asset value.
Benefits of Refinance
Refinancing enables businesses to restructure existing high-interest or short-term loans into a single, more manageable facility. This streamlined approach can have a profound impact on both immediate financial stability and long-term growth. Advantages include:
- Lower Interest Costs: Replace expensive debt with a more favourable interest rate to reduce monthly repayments.
- Improved Cash Flow: Freeing up capital previously tied to debt obligations can be reinvested into other strategic areas of the business.
- Simplified Finances: Consolidating multiple loans into one repayment plan minimises administrative hassle.
- Enhanced Credit Profile: Consistently meeting repayment schedules on a restructured debt can help rebuild or strengthen a business’s credit history.
The Results
Immediate Debt Clearance and Growth Potential
The £4.2 million refinance enabled Seb to clear his expensive debt, stabilise cash flow, and position his company for further expansion. Freed from prohibitive interest rates, the business could re-focus on strategic priorities, including the adoption of new technology and further investment in research and development.
With improved financial flexibility, Seb has continued to thrive, returning to Millbrook Business Finance to discuss additional funding that will aid further expansion projects. Our ongoing relationship underlines the confidence Seb and his team have in our tailored support—securing not just immediate relief but a long-term partner for sustainable growth.
- Cleared high-interest debt, achieving a healthier balance sheet
- Secured ample working capital for day-to-day operations and expansion
- Strengthened partnership with Millbrook for future finance needs
- Optimised conditions for investing in R&D and site expansion
Summary
A Stronger Future
The client's success story reflects Millbrook Business Finance’s commitment to understanding clients’ unique challenges and leveraging their assets to structure effective funding solutions. By consolidating existing debt, protecting valuable resources, and delivering funds quickly, we enabled Seb and his team to stabilise operations and pursue new opportunities. This partnership illustrates the power of a well-structured refinance and secured loan—fostering growth, innovation, and long-term success in the UK’s competitive metals and recycling sector.
- Holistic solution combining refinance and secured lending
- Swift execution to minimise disruptions
- Empowered long-term growth through increased financial flexibility
- Model for future partnerships in the competitive metals and recycling industry
If your business could benefit from refinancing high-interest debt and saving your business money on monthly repayments, contact Abdus Samad, Business Finance Specialist, on today to explore your options.
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Call: 0333 015 3301
