Successful funding enables business expansion
An EDM machine tool supplier required new EDM machinery to expand and compliment the range of machines in their newly formed sub contract work shop.
The machinery needed would provide the full range of EDM processes to its sub contract clients offering a one stop solution along with quicker turnaround times for their clients. In addition, the company were also hoping to create new job roles. The company Director sought advice from Liam Southall at Shire Leasing Plc. Liam suggested that he should seek advice from Close Brothers and apply for assistance from the regional growth fund.
Complicated made uncomplicated
The client was introduced to Mark Sanderson at Close Brothers and together with Liam at Shire Leasing; they worked on a complex deal as the supplier was based overseas. The transaction was funded in USD (Dollars) which meant the VAT and duty had to be paid in advance by the company. An application for a grant from the government’s Regional Growth Fund (RGF) through the Close Brothers Asset Purchase Scheme was submitted. This scheme enables qualifying businesses to receive a grant towards a deposit on a new business asset, dependant on the size of the business and the number of jobs being created or safeguarded.
Shire Leasing’s customer application was successful, therefore allowing for the employment of two additional members of staff which would help the business’s plans for growth. Close Brothers also provided a flexible Hire Purchase facility to cover the balance of the specialist machinery.
Expansion plans become a reality
The RGF grant and the residual value based funding from Close Brothers enabled the company to expand their business further and gave them more prominence in a competitive industry.
The customer said: “We are very grateful for the help and guidance given to us by both Shire Leasing and Close Brothers to enable us to purchase these machines and achieve the expansion that we required in our newly formed sub contract work shop. If the need arose again, we would not hesitate to work with Shire Leasing and Close Brothers in the future.”
Liam Southall from Shire Leasing commented, ‘Our client’s business is well established and they are both easy and flexible to work with. The client profile fit perfectly the criteria to qualify for the RGF funding, and the funding facility approved very promptly following their enquiry. Complications arose when we were dealing with an overseas supplier, a third party shipping company and third party exchange rate company, meaning the deal very quickly became more complicated than originally anticipated. However, due to incredible efforts and communication between Mark Sanderson (Close Brothers), our customer and I, we were able to negotiate a flexible facility to make the deal happen. This deal is an exceptional example of how our Broker relationship with Close has been able to lead to a successful facility leading to our client achieving the best cost-effective package to assist in their desired growth. We will certainly be looking to do more with Close over the course of 2016.’