A recent survey of 1000 businesses undertaken by Marketinvoice suggests just 1 in 10 would look to fund growth with a business loan.
Rather, amongst the surveyed businesses, more than a quarter (26%) favoured invoice finance, followed by asset-based finance (22%). Aside from debt, businesses were typically reluctant to cede control to equity or venture capital investment, with just 6% having used this method of funding to boost growth and valuation.
Will Mason of Liquidity Club is more guarded around specific product focus, including invoice finance, ABL or business loans:
"Businesses must be wary of the ways in which they borrow and what security is offered to ensure that they remain flexible both in times of need and in times of success. For asset rich businesses the ideal growth funding might be secured, but there are many service based businesses for whom secured lending does not work and other options must be explored."
"This is why we recommend all businesses speak with an advisor when considering their financial structure and debt needs, bringing in their future plans but also taking time to consider the worst case scenarios".
To speak with us today please contact Will or the team here.
To read more about the Marketinvoice survey, click on the links below:
PGI Seating Solutions is focused on future growth and new contract wins after receiving a six-figure funding working capital facility. Liquidity Club has arranged and advised the deal with Positive Cashflow Finance acting as the funders.
PGI Seating Solutions manufactures and installs specialist fixed seating and bespoke contract furniture. PGI Seating Solutions specialises in all aspects of fixed seating such as bench seating, booth seating, restaurant and bar seating and banquette seating. The business quickly established a reputation for niche contract work to provide seating solutions for pubs, universities and larger corporates. Today the company employs 12 people.
PGI Seating Solutions has enjoyed steady growth and the working capital facility provided is helping to support PGI Seating Solutions future growth strategy and day to day operational requirements.
Paul Gavillet, Managing Director PGI Seating Solutions said: “We’ve built a superb reputation and are delighted to have fashioned and furnished hundreds of booth, bench and banquette seating systems for clients across the UK. Our key focus is on providing quality and we are proud of our gifted team of upholsterers, joiners, machinists and polishers. We have enjoyed steady growth and thanks to this new finance facility we can grow the business further with confidence and fulfil new contracts. We have been very happy with the guidance provided by Chris Carter at Liquidity Club and Andy Hume at Positive Cashflow Finance.”
Liquidity Club continues to expand its team in Birmingham, with Cameron Leitelmayer (above: back left) joining as an associate. Cameron will support both sales and operations functions, working with our existing team to help businesses raise funding for their current and future needs.
Cameron brings with him practical financial experience, having previously worked for The Office of the Police and Crime Commissioner (PCC) for Thames Valley as an Apprentice Assistant Accountant completing AAT qualifications Level 2, 3 & 4 as well as being an apprentice ambassador for Oxfordshire Apprenticeships. Cameron was awarded The Freemen of Oxford Accountancy Apprentice of the Year in 2018.
Socially Cameron plays for Helmdon Cricket Club, winning back to back promotions in the past 2 years.
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
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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.”