Flylolo, a flight operator specialising in purchasing seats on ‘peak season’ flights and selling them to individuals and families at reduced rates, is flying high following the granting of a revolving credit facility provided by Reward Finance Group, with the help of Liquidity Club who facilitated the transaction.
Typically operating from smaller regional airports, such as Southampton and flying to Greece and the Canaries, Flylolo buys aircraft seats in bulk, as soon as they are released, in order to obtain the best prices.
Complex Cash Flows
Parisa Lian of alternative SME funder, Reward Finance, who arranged the credit facility, recognised the challenge for the company.
“As the awareness and reputation of Flylolo has grown, so have sales of its lower priced ‘holiday season’ seats. To satisfy the growing demand, the company needed additional cash to buy increasing numbers of tickets early in the season. With a relatively long period from purchase to payment means the amount of tickets they can buy is restricted by the amount of cash available. As a proven and growing business we were keen to help Flylolo enjoy even greater success by plugging the working capital requirement until payment for the seats is received.”
Managing director of Flylolo, Steven Dendle, who has extensive experience of the travel and airline industry, is looking forward to building on its success.
“Every year we hear about families who have to pay inflated prices to go abroad during the school holidays, whether it is Easter, summer or Christmas. Therefore the principle of our business is straightforward. By purchasing seats on flights in bulk, when they are at their cheapest, we can pass some of these savings on to our customers. Parisa and Reward have been a real asset to our team. I have been impressed with the way the deal has been structured by using existing assets to leverage cash. The new credit facility has allowed us to take advantage of purchase opportunities which are crucial to our business.”
Liquidity Club has arranged and advised an eight figure Asset Based Lending (ABL) facility for Rotherham-based Hatfield Energy to support the firm’s fast growth.
Hatfield Energy are on track to reach its forecast group turnover of over £30million at the end of its financial year in October 2018. Liquidity Club worked with ABN AMRO Commercial Finance (ABN AMRO) who acted as funders on the deal.
Firmly established as a family owned, pioneering Yorkshire business, Hatfield Energy has been based in Rotherham for over 45 years. It has evolved at a fast pace offering bulk commodity supply into heavy industry with an ever-increasing portfolio of secondary and virgin raw materials. Operating from a six-acre site, Hatfield Energy can accept and process thousands of tonnes of select bulk materials and industrial wastes. Resourcing, recycling and reusing industrial wastes and by-products from heavy industry has been a core part of the business for the last 40 years.
The business is today run by the second family generation of brothers, Grant and Mark Hatfield and employs over 40 people. It boasts many awards having recently been recognised in Yorkshire’s Fastest 50 Awards in 2018 (Yorkshire Post/Ward Hadaway) and in 2014 won a coveted Queens Awards for Enterprise – Innovation.
The ABL facility will support Hatfield Energy’s growth strategy which includes further expansion of its portfolio of products and capabilities. The facility was facilitated by Adam Simpson from Liquidity Club and has been provided by AMB AMRO. It works by accessing cash held within the debtor book and inventory assets, thereby giving Hatfield Energy access to working capital to support future growth.
Austin Thorp, ABN AMRO Manchester Sales Director said: “ABN AMRO is delighted to be able to support Hatfield Energy with its continued growth trajectory - a long established business with a strong management team, which we are confident can deliver its plan. Working in conjunction with the Liquidity Club, Hatfield’s funding requirement was clearly identified, and a suitable funding solution provided to meet their growing business needs.”
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