Industry: Manufacturing
Product: Asset based lending (ABL) with bad debt protection
Facility size: £10 million
Based in Lincolnshire, the customer has been in operation for nearly 200 years and has a strong heritage brand. They manufacture high quality pillows, duvets and mattress protectors, with around 20% of the UK “filled products” market.
The business was well-versed in ABL as a sustainable form of funding and early in 2015, the directors approached the wider market with a view to refinancing the organisation following uncertainty regarding the ongoing ownership of its current funders. There was also a desire to generate additional working capital to expand their product range and invest in new plant and machinery.
Close Brothers had developed an excellent relationship with the board following an initial meeting three years prior, and was invited to take part in the selection process. Despite being up against strong competition, which included the incumbent financier, the team worked tirelessly to tailor a package that would help the organisation reach its business and growth aspirations.
As a result of their dedication and perseverance, Close Brothers was chosen due to a particularly flexible approach to ABL, state-of-the-art software and an ability to move quickly. The facility put in place consisted of invoice discounting (£7.75 million), a stock loan (£1.8 million) and £430k to refinance their existing plant and machinery.
The funding will support the customer’s diversification into a new sector, additional exports and a re-launch of the firm’s own brand of bedding and bed linen.
