Liquidity Club has arranged and advised a seven-figure working capital facility for Rotherham-based Specialised Laser Products Ltd (SLP) to support future growth. Liquidity Club worked with Ultimate Finance who acted as funders on the deal.
SLP is run by owner and founder Duncan Proctor, an expert in the metal cutting services sector. SLP was formed in 1995 to initially support the Machine Knife industry in the South Yorkshire area with laser cutting services. SLP has since grown and employs 30 people from a 20,000 sq ft unit at Ford Park in Rotherham. They relocated to this site in 2000 and expanded into more traditional laser markets, of mild and stainless steels, supplying a multitude of industries. Today the family-run laser cutting company is a multi-million-pound business delivering laser cut metal products across the UK, with accreditations for Quality Management ISO 9001:2015 and CE accreditation that assures products meet all the European Community directives.
The working capital facility was structured by Adam Myers at Ultimate Finance, who worked with Adam Simpson at the Liquidity Club to tailor a finance package to support SLP’s growth strategy to move the business forward to expand with new projects in the rail sector and increase profits. The working capital line includes a revolving facility that provides flexibility for SLP to access funding when it is needed to assist new contract wins and growth opportunities.
Duncan Proctor, Managing Director SLP said: “The new funding package puts SLP in a strong position for continued growth and will support new contract wins and our ability to drive forward the business. We have recently expanded our sales team which further strengthens our ability and desire to increase our customer base across the UK. We want to be the best at what we do – which is why we’ve invested in our people and use the latest technology, enabling us to deliver projects on time and to specification."
“I have been impressed by the support provided by Adam Simpson at Liquidity Club. He has been first class. The whole process has been much easier because Adam reviewed the funding options and introduced us to the right funding partner. As a result, we have worked with Adam Myers at Ultimate Finance and received the funding boost we needed to support our growth.”
SLP is winning exciting new contracts in the rail industry and the funding that we’ve provided means they can maximise those opportunities. We were able to offer Duncan and his team an increased finance package that provides extra security to continue pursuing their growth plans with confidence. Working with Duncan and Adam at Liquidity Club, has been a pleasure.”
Hardware.com, an IT services and solutions provider gearing for growth in cloud-related services, has secured a £5m funding package provided by Secure Trust Bank following consultation with Liquidity Club.
The company has notable clients across the commercial and public sectors including major retailers, managed service providers, education and government.
Liquidity Club met with Gwyn Hicks, COO and CFO of Hardware.com, to understand the plans for growth and capital requirements for the long-term. The result was an introduction to Secure Trust Bank who provided a facility that better met the needs of the business than their incumbent provider.
David Parsons, Regional MD at Secure Trust Bank further added: "Hardware.com's value-added offering has helped it secure contracts with blue-chip customers across the globe. With this new line of funding, the business can invest in new services to allow it to scale up and bring in new revenue streams. We're keen to support Hardware UK, and look forward to seeing the company progress in the coming years."
I’m a man that doesn’t ‘do things by half’ and I take that approach into every aspect in my life! In my view, there is no point doing something if you’re not giving that something 100%.
We've all heard the phrase “Abs are made in the kitchen”. Starting a new role and fitting in a training plan has been intense, especially trying to reconnect with all my contacts across the North West region. Planning my diary to maximise efficiency is a crucial part of success. The same approach can be taken with your finances. Planning for peaks and troughs in cashflows and seeking help early can avoid larger issues down the line.
‘Don’t be a busy fool’ - organising your diary and determining where you need to be is a full-time job in itself! Throw travel and rush hour traffic into the mix, and your days can quickly become shorter and less efficient. If you are looking at fundraising for your business, is meeting multiple lenders to compare really the best use of your time? Why not focus on running the business instead and leave an expert partner to manage this, maximising the time available to you?
Review the plan
Many businesses set out their annual financial objectives once - at the start of the calendar year or start of their financial year. Even plans made with the best intentions should adapt as time moves on, and the end objectives change. It is good practice to take stock of how your business is performing towards your target and does anything have to be changed to achieve this? Don’t be afraid to amend this where needed. Missing an occasional training run will not be the end of the world – life does get in the way!
We at Liquidity Club have the market expertise to advise the SME market for their funding needs and business goals. With access to the full financial spectrum we are fully prepared to help and would welcome the opportunity to support your SME contacts where possible.
Yet despite what would seem significant changes to the product offering, the market has still not achieved what I believe is its full potential.
Some of the larger players now have moved away from the smaller SME market, driven by compliance, cost of capital restraints and the difficulty of changing old legacy operating systems. This has led to a number of smaller independents, filling the space, and amongst these changes we also have seen the explosion of Peer to Peer lending
So the lesson to be learnt is I suppose, to be adaptable , to embrace change but at the same time don't throw away all the knowledge gained along the way.
After 35 years in the lending world, working within given parameters and product sets, I now have the opportunity to look across the market for solutions to a range of funding problems that we are presented with. From trade finance, invoice finance and full ABL, to tax credits of R&D expenditure and overpayments in Stamp Duty; in short there aren't many funding requirements that we cannot present a solution for.
To learn more or for assistance raising finance for your business please contact Tim or one of the team here
| || |
I remember my first day well, walking into the Finance 4 Business' brand new offices and being paraded around trying to remember all the names presented to me. Sitting at my desk, I broke the spine of a crisp new note pad and that was that – time to support the growth of Liquidity Club.
How it unfolded
The concept, ‘an outsourced sales team’, is how we disrupt the market; working closely with a small selection of business finance funders who we felt fit with our values and the needs of businesses. The concept was formed, and it was time to find these finance providers the right funding opportunities.
I jumped in my car, took many trains, made countless calls, talked to loads of businesses, to my introducers, learnt all about the world of social media and then we made a video that is yet to go viral (see above), but I have total confidence! What was clear from early on was business’ were looking to raise finance but other than speaking to their bank they didn’t know where to start (as Will Mason reported in his blog earlier this year).
Pleasingly (and thank you to everyone that has supported me) the opportunities came in thick and fast and the results have exceeded expectations. We’ve secured cashflow solutions to include refinance, new finance, acquisition & transactional debt, growth and turnaround all for a variety of situations.
Liquidity Club is not standing still. We have invested in our people and are up to a team of seven, bolstering our analytics team, launching in the North West and now London and the South. Everyone believes in our core value ‘Pragmatism’ - we are pragmatic in everything we do, approachable, straight talking and lateral thinking.
It’s good to stop and pause for breath and reflect but not for too long as there are businesses that require finance and funders willing to support them, it’s time to kick on!
Stephen Pegge, Managing Director of UK Finance said: "Asset based lending continues to show steady growth, driven mainly by advances to larger businesses. Support to small and medium-sized companies through invoice finance and asset based lending is now comparable to total balances drawn on overdrafts."
"However, overall growth has remained modest in line with recent trends across SME lending, as businesses delay investment decisions until the broader economic picture becomes more certain.""
Liquidity Club has arranged and advised a seven figure Asset Based Lending (ABL) facility for Penistone business AD Bird Stainless Limited. Liquidity Club worked with Wyelands Bank who acted as funders on the deal.
The ABL facility was structured by Ian Flaxman at Wyelands Bank, who worked with Adam Simpson at the Liquidity Club to tailor a finance package to support AD Bird Stainless Limited’s growth strategy. The ABL line is a revolving facility that works by accessing cash held within the debtor book and assets, thereby giving AD Bird Stainless Limited access to working capital to assist future growth.
The business is today run by the second family generation of Nigel Bird, Managing Director, and son of founder Derek Bird.
Nigel Bird, Managing Director at AD Bird Stainless Limited said: “The funding is a very important driver in our growth and allows us to manage our future plans. We are extremely busy with new orders and supporting existing customers, both in the UK and overseas, and I am excited to have the financial backing to invest for the future. This year we are on track to hit our forecast turnover which has been assisted by our increased focus in the marine sector. The support provided by Adam Simpson at Liquidity Club throughout the process has been great, he has really understood our business and our growth strategy.”
Adam Simpson, Commercial Director Liquidity Club said: “The availability of working capital to support growth is an issue faced by most businesses, therefore borrowing to increase liquidity is a significant part of today’s business environment. ABL is a cost-effective and agile alternative for companies because it is secured against company's assets. AD Bird Stainless Limited is a fantastic business and I am delighted to introduce them to Wyelands Bank who have shown great flexibility and understanding to tailor an ABL funding package that fits their needs perfectly. It liberates the cash held within AD Bird Stainless Limited’s company assets, thereby giving faster access to substantial sums of working capital.”
Tim’s appointment comes at a time of significant growth for the Liquidity Club who are expanding across the UK and currently have a strong presence in Birmingham, Yorkshire and the North West. The launch of the business into London and the South East marks a natural transition of growth for the business that acts as an alternative business channel for business funders, to assist SME’s looking to raise finance to support growth and present impartial financial solutions that are tailored to suit each individual business.
Tim is an extremely experienced ABL and finance professional with a strong background in the sector having worked as Managing Director for BNP Paribas Commercial Finance and as Director in the ABL businesses of Barclays, Lloyds/Bank of New York/GMAC and various advisory consultant roles, within the sector. Tim will be working with David Totney, Managing Director at Liquidity Club to spearhead their presence in London and the South East.
Tim Corbett, Advisor at Liquidity Club said: “Liquidity Club offers a fresh new approach to funding for SMEs and since their inception last year, they have grown significantly and expanded their geographical presence across the Midlands and North. I am excited to be launching their London and South East team and to work strategically with clients to ensure they find the right business partner to fund their business needs. Liquidity Club offer an innovative way to assist businesses with their funding needs, working as a broker with a difference, acting effectively as an outsourced Business Development team. We use our experience and knowledge to really understand what is right for each deal and work with both the customer and potential funder.”
David Totney, Managing Director, Liquidity Club said: “Tim’s experience and background is superb, and we are delighted to welcome him to the team. The launch of Liquidity Club into London and the South East is a big step forward for us and Tim’s appointment shows we are attracting a high calibre of people to work with us. Tim is very well connected and knowledgeable, and we are looking forward to sharing his expertise with SMEs across the region and colleagues at Liquidity Club.”
Chris’ appointment highlights the successful growth of Liquidity Club which was launched a year ago as an alternative business channel for business funders to assist SME’s looking to raise finance to support growth and present impartial financial solutions that are tailored to suit each individual business.
Chris will concentrate across the North West region including Manchester and will work alongside colleagues in the Birmingham and Leeds teams. Chris has extensive experience in the banking and financial services sector having recently worked for Mercia Fund Managers and prior to that the Royal Bank of Scotland and NatWest.
Chris Carter, Regional Director, North West at Liquidity Club said: “I am very excited to join Liquidity Club to expand their presence across the North of England. The North West is a thriving region and I am looking forward to spending time with business owners to understand their business plans and structure the appropriate finance solutions with the right funding partners. The ethos at the Liquidity Club is very much around simplifying what can be a daunting process and by working in partnership with businesses we can achieve a tailored funding package to support their future aspirations.”
Adam Simpson, Commercial Director, Liquidity Club said: “Chris’ appointment comes at a time of growth for Liquidity Club as we look to increase our presence in the North West to meet the increasing demand for our services. We work strategically with our clients to ensure they find the right business partner to fund their business needs. Chris has a great network of contacts across the Manchester and North West business community and brings considerable experience in the financial sector and local market to the Liquidity Club team. I am delighted to welcome him and together look forward to expanding further our presence across the North.”
Those SMEs who have borrowed in the last 12 months have generally used finance for expansion (29%), working capital (28%) or purchasing capital equipment (22%). In addition, around 2 in 3 of these borrowers have used finance provided by their main bank. 85% of SMEs are using finance provided by a company with whom they have an existing relationship, whether a bank or another provider. Contrary to the common media rhetoric, only 12% are being declined when applying - a real positive message.
One concern amongst the statistics is that only 4 in 10 businesses are consulting a professional advisor or finance provider about funding. This can be so valuable in finding the right structure and cost of funds. At Liquidity Club we have seen numerous businesses able to release far more cash, or save money, when moving to new providers compared with their incumbent provider. Yet only 7% of SMEs, in the statistics, have moved to a new provider in the last year.
Perhaps this highlights the need for more information being made available to directors of SMEs. Equally, it may be that increasing choice of providers, complex terminology and the number of different products can be confusing for those directors of SMEs. For any who agree with these sentiments, we would welcome a conversation about debt funding to break down some of these barriers.
All statistics sourced from BVA BDRC: