Case Study: Airport Transfers

Case Study: Airport Transfers

Our client is the European market leader for pre-bookable airport transfers. Founded in 2005, the company has grown to sell to over 3 million passengers in over 120 countries across 7,500 locations.

Extraordinary Event

The default of a major B2B customer stressed the company’s working capital requirements. This was further exacerbated by the seasonality of the holiday leisure market. The company found that they had to extend their payment terms with suppliers, as a method of funding the company’s working capital. A small overdraft facility was setup with a bank, but this did not fulfil the capital requirement of the company and the bank was unwilling to provide any further financing.

A longer term and more sustainable working capital solution was required. This would allow the company to shorten their payment terms back to the standard industry levels, thereby enabling them to negotiate better pricing with suppliers. In turn, this would allow the company to increase margins and enhance profits.

Altimapa’s Role

Altimapa introduced the company to a number of relevant funders, then helped to manage communications to ensure that the process was smooth and efficient. There were several interested parties but one funder had prior experience in the sector and expertise in both travel and internet based businesses. They were therefore able to act quickly and could issue a term sheet within a week of the initial meeting.

“Altimapa did an excellent job helping us through a very smooth and efficient fundraising process, always listening to our business needs”
Founder & CEO

The Private Debt Solution

Subject to due diligence, the company was offered a competitively priced 4-year, £5 million lending facility that met the requirements of the business. After some negotiation, the final agreement was signed and the loan was drawn down 6 weeks later.

Whilst one of several examples, this case study shows how institutional investors are often able to work with speed and proactively offer a solution that meets the needs of the business.

Summary Terms

Amount£5,000,000
Tenor4 Years
TypeTerm Debt
Additional FeaturesInterest only in first year
Warrants
Uses of CashWorking capital facility