Transline
“When banks in the UK and Canada were unable to help us, FGI stepped in and provided us with a $3MM covenant-lite facility against our accounts receivable, enabling us to successfully roll-out our growth strategy and repay a portion of our intercompany loan.”
Group CFO, Transline Canada, Inc.
Introduction
Transline Group is one of the UK’s fastest growing human resources organizations. Founded in 1989, the business provides management of temporary workforces and recruitment of permanent staff for manufacturers, home delivery services, and many other industries. Their operations span over 100 sites in the U.K., as well as sites in Thailand, Dubai, Canada, and Eastern Europe.
Situation
Transline Canada is managed from their UK headquarters, and required a feasible financial solution to set up its Canadian operations. The firm needed working capital from Canadian lenders, but found this tricky due to main operations coming out of its UK headquarters. When Transline turned to UK banks, they were unwilling to provide funding for a Canada-based operation. To make matters more complicated, Transline Canada’s accounts receivables were highly concentrated and the company also had a stakeholder loan in place. With specialist expertise in cross-border financing, FGI provided a solution for Transline, allowing it to successfully further expand its offering globally.
Solution
FGI provided Transline Canada with a $3MM covenant-lite facility against their accounts receivable, which ran alongside their UK Clearing bank facility. This gave the company the working capital they required to execute their growth strategy within Canada, allowing Transline to move forward with a $3m facility in its new country of operations.
