Cat Tech is a specialist international firm operating in the oil and gas industry. An established company of over 30 years, they are based in Scunthorpe, UK, and have subsidiaries in Singapore, Thailand and China. Their work takes them around the globe servicing and replacing catalysts in petrochemical sites and oil refinery reactors.
With the incumbent bank exiting, Cat Tech needed to find a new funding solution. Completing jobs requires upfront financial outlay for equipment and travel which has historically been made possible by the use of invoice finance. However, the existing provider was unable to offer the speed and consistency of decision making required to support company growth ambitions.
Cat Tech met with several banks but none gave a tailored approach which was essential to understanding the intricacies of a more complex business model. At this stage, Close Brothers were engaged to create a more specific structure.
Joe Walker, Finance Director at Cat Tech, explains why he chose Close Brothers:
“I had heard of Close Brothers before as our insurance is financed through them, but I didn’t know they provided invoice finance. We have a niche business and need a product that isn’t off-the-shelf, and Close Brothers offered this.”
Close Brothers proposed a more detailed and tailored structure using the real time invoice discounting platform IDeal™ which immediately injected liquidity into the company. In addition, bad debt protection ensures that payment is still received in the event that their customers can’t settle their invoices.
The bespoke arrangement provided Cat Tech vital cash flow and continues to drive the firm forward. Not only can they buy new equipment for upcoming jobs, they also have the peace of mind that funding is available which will grow in line with the business’s turnover.
Cat Tech is pleased with how the deal was managed and the successful approach implemented by Close Brothers. Joe Walker says:
“Pricing gets you through the door, but on an ongoing basis flexibility is as important to us. In this business, working capital can spike, so we want to be able to contact people who will work with you, not against you. Close Brothers has helpful staff who are easy to contact and get back to us in a timely manner.”
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