Cross Border Financing Solutions
Who are Lloyds TSB Commercial Finance ?
Lloyds TSB Commercial Finance is part of Lloyds Banking Group plc and the UK’s leading Asset Based Lending (ABL) financing solutions provider.
Building on our operations in the UK and in response to an increasing demand from pan European/Global groups for cross border financing solutions, we have successfully set up an International Network with offices in the following jurisdictions:
Germany, France, Belgium, The Netherlands, Ireland and Spain.
Our continental European offices are staffed by highly experienced nationals who are naturally able to accommodate your requirements in their respective countries whilst helping you to understand local business customs and practices.
Who can benefit from our cross border financing solutions ?
We are able to fund trade receivables (debtor books) in any of the countries mentioned above in addition to the UK, although our cross border focus means we are seeking to fund assets in two or more countries.
Each country has its own peculiarities and the benefit of our international network is that we have local staff who are well placed to anticipate and meet your needs in those countries.
The total financing requirement should be in excess of €5m. Whilst there is no upper limit to the level of funding we can extend, we may look to syndicate facilities of a significant size with a reputable partner(s).
Our receivables based financing is revolving. It fluctuates in line with the value of your underlying receivables. Our facility is not disclosed to your customers and you continue to run your sales ledger as usual.
When can we provide support ?
In cross border transactions where there is a need for working capital. To replace existing facilities (with additional headroom) or as part of an acquisition, spin off, MBO/MBI or other transaction. We have experience in dealing with both equity and mezzanine providers as part of an overall solution where required.
Can we finance assets other than receivables ?
Our core expertise lies in structuring receivables based solutions. Should additional funding be required to support a transaction medium term, we can look to leverage other assets such as stock, property or plant and machinery. However, we are not able to do this in all jurisdictions due to local legal constraints or commercial issues.
Do we only assist investment grade businesses ?
No. Most of our relationships are with sub investment grade businesses. We are able to assist where there is a good quality receivables base upon which we can secure ourselves and where there is a credible business plan with positive outlook, backed by a management team with proven track record.
What factors are key to our success ?
- We take pride in our professionalism and dedication to delivering service excellence.
- We have a strong team ethos and are sensitive to cultural and business practices across different jurisdictions.
- We have structuring expertise across a broad range of assets, transaction types and jurisdictions.
- Our approach means that you can benefit from fully tailored finance packages from a single provider in a cross border situation.
Are we able to offer a full range of banking products ?
We work closely with our LBG colleagues in the UK, The Netherlands, Belgium and Spain and we would encourage you to take advantage of their wide range of banking services.
What costs are involved ?
A funding margin is charged on the funds which are advanced to you. You are not obliged to draw down all the funds which are available to you. A one off structuring fee is charged at the outset of our relationship. On an ongoing basis a service fee is levied to cover costs associated with the management and operation of the facility.
What are the key stages prior to funds being made available and how long does the process take ?
- The process can take anywhere between 4 weeks and 6 months depending upon the complexity and scale of the transaction. The key stages in putting in place a facility are:
- Information gathering, discussion and initial data analysis which will allow us to gain a clear understanding of the business, its requirement and our ability to structure a facility which meets your ongoing financing needs.
- We will issue you with an “Indication of Terms” which will outline the proposed facility structure and pricing.
- Once we receive your acceptance, we will organise site visits, normally over 2 days which will focus on assessing the quality of your receivables (and other assets) and underlying systems. The results of these audits will be presented to you.
- We will then prepare a formal submission to our credit committee for sanction.
- Once our offer is accepted, the legal documentation process and the putting in place of the operational infrastructure can begin.
How can we contact you to discuss our cross border financing needs with you ?
Please contact Christopher Hart (christopher.hart@ltsbcf.com) on +44 752 524 0139 who will be happy to discuss your needs with you.
Examples of Recent successes
CeDo Group
CeDo is one of Europe’s leading manufacturers of household disposables, manufacturing both own-label and proprietary products such as refuse sacks, bin liners and other speciality kitchen and household disposable products including nappy sacks, cling film and aluminium foil. It holds strong supply relationships with the majority of Europe’s largest supermarkets and discounters. Annual turnover is in excess of €200 million.
As part of the buy-out of CeDo by Rutland Partners in July 2009, we provided significant working capital facilities in Germany, France and the UK in addition to term loans on stock and plant and machinery in the UK.
Tolsa Group
Established in 1957 and headquartered in Madrid, Tolsa Group extracts, transforms and markets specialist clays and composts. Its products have over 50 applications, including use as gardening substrates, industrial absorbents and additives for animal feed.
The €160 million turnover business has operations in 60 counties, employs 850 people and is Europe’s leading cat litter producer, with 37 per cent of the market.
In order to support Tolsa Group’s growth plans, Lloyds TSB Commercial Finance in both Spain and the UK have arranged an asset based lending (ABL) package, which lends against the value of its UK manufacturing arm. Following the establishing of a successful working relationship, the extension of facilites to other Tolsa subsidiaries is in the pipeline.