A Cambridge-based healthcare data company needed to refinance two existing facilities and raise growth capital - but one loss-making year had shut the door at traditional banks. Here's how Risecap structured a deal that cleaned up their balance sheet and funded their AI expansion.

CLIENT SNAPSHOT

Pharma intelligence services | £15.6m annual revenue | 11 years in operation
A specialist consultancy providing competitive intelligence and research services to pharmaceutical and biotech clients globally. Over 140 employees across the UK, US, and Europe, synthesising complex healthcare data into strategic insights that inform billion-pound decisions.

THE CHALLENGE

The business had two existing lending facilities totalling around £520k at approximately 14.5% annual rates. While manageable, they wanted to consolidate into one cleaner facility and access an additional £200k to invest in their AI platform and working capital. The problem: 2023 showed a loss on the accounts after years of investment in systems and slower post-Covid market growth. High street banks walked away immediately - they wanted two to three years of consecutive profits.

WHY THEY CAME TO US

• Referred by a fractional CFO partner
• Their own bank declined due to the 2023 loss, despite strong current trading
• Didn't want three separate lenders on the balance sheet if they raised additional funds
• Needed a partner who understood the story behind the numbers
• Only specific shareholders were able to provide a personal guarantee

The business had already contracted £14.2m of their expected £16.5m revenue for the year (85% locked in), with cash in the bank and a £2.4m debtor ledger. The fundamentals were solid, but the accounts told a incomplete story.

OUR APPROACH

We focused on current performance, not historic losses:

• Highlighted £6.5m turnover and £285k profit already generated in 2025
• Showed 85% of annual revenue already contracted and invoiced
• Explained the context behind 2023 - strategic investment during market slowdown, not distress
• Positioned this as balance sheet optimisation, not desperate refinancing

The process required patience. Internal decisions were sensitive and took time. We kept the lender engaged over an extended period without pressure, explaining the client's position clearly. When the offer needed refreshing, we protected the original pricing - no rate increases.

THE IMPACT

• £720,000 consolidated facility over 5 years
• 1.1% monthly rate (13.2% annually)
• Two lenders consolidated into one clean facility
• £200k additional capital for AI platform investment and working capital

The consolidation simplified their balance sheet immediately. The additional £200k is now funding their AI development, which will strengthen their competitive position in an increasingly data-driven sector.

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TAKEAWAY

One difficult year doesn't define a business. The right funding partner looks at trajectory, not just accounts - and keeps deals alive when timing gets complicated.

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