Skip to main content

For Richard Welland, the Managing Director of Sovereign Rotating Machines, sourcing funding had often been a frustrating process.

Business Challenge

Richard’s business manufactures parts for the automotive sector but, despite a successful track record of profitable growth, he hasn’t always found it easy to secure funding. For a business with Sovereign’s potential, this was very frustrating. He says: “There is a great deal of growth that we can get out of this business over the next five years, so we need to have funding to help us make that expansion.”

It’s an issue that businesses with growth potential commonly face. As they become more successful, picking up new orders and larger contracts, their cash flow may not be strong enough to support the expanded operation, or additional investment may be required in order to serve new customers – in plant and machinery, for example.

Solution

The solution for Welland has been to forge a collaborative working relationship with Close Brothers Invoice Finance, which has provided the funding Sovereign needs to fulfill its business objectives. The partnership has two advantages:

1. Invoice discounting generates a funding stream that grows with the company

2. Close Brothers has worked closely with Richard Welland to fully understand and feed into his business plan.

Result

The invoices speak for themselves: they demonstrate the rise in Sovereign’s customer base and as the amount of invoices increase, so does the funding.

Commenting on the facility, Richard said: “Invoice discounting works very well for us. We can prove we have the customer base and as we need to grow, the funding is there with us, unlike with conventional bank loans or overdrafts which are for a fixed amount that you need to renegotiate every year.

"Close Brothers have taken the time to understand our business model and that has enabled us to grow our business at a rate of 25% year on year for the last three years. We’ve done that together as a team."

Contact us

Close Brothers Invoice Finance
Ridgeland House
165 Dyke Road, Hove
East Sussex, BN3 1UY

T: 0127 305 9530 *

*Freephone from landlines

Keep in touch