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Close saves the day
A group of British engineering companies including the legendary motorcycle brands BSA and Norton have formed a coalition to help them survive intense pressure from the Far East. Merging put a huge strain on BSA-Regal's cashflow and its managing director says that it was Close that saw it through the critical growth period.
Article
Extract from an article that appeared in the Daily Express.
A group of British engineering companies including the legendary motorcycle brands BSA and Norton have formed a coalition to help them survive intense pressure from the Far East.
The Southampton based BSA-Regal group of companies have found that by working together they can share overhead costs such as administration and accountancy support while focusing on making and selling their products from motorcycles to food production machinery. It cost £2.5 million for the companies to join forces but since then the group has been profitable.
Merging put a huge strain on BSA-Regal's cashflow and managing director David Bennett says that it was Close Invoice Finance that saw it through the critical growth period. "When the bank would not support a vital buy-out, Close Invoice Finance stepped in with funding - we could not have survived without it," said Mr Bennett.
lose has recently launched Metrocash, a factoring package specially designed for growing firms less than three years old and with turnovers of less than £250,000. Close will provide a full factoring service for a fixed 1 per cent management fee on each new invoice raised, plus 2.5 per cent above base rate on the amount during the time it is borrowed. David Thomson, CEO at Close Invoice Finance commented, "smaller, dynamic, growth businesses need special support and nurturing. Factoring is a lot more relevant to new businesses than it used to be as the agreements are clearer and better value. We encourage businesses to use Metrocash like an overdraft but it is a cheaper option."
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