Founded in 2004, Reality Finance Solutions’ customer is a renowned English winemaker that produces, packages and supplies fine wines from around the globe to both trade and the public.
The company has a contract packaging unit, producing and packaging lines for large and small companies with a variety of wine and spirit products.
In recent months, the business noticed an increased demand for carbonation and wanted to be able to produce a wider range of products including cider, beer and selected soft drinks.
In order to do this, they needed to acquire new assets including a new bottling plant worth £175,000 and a new washing and drying machine worth £25,000.
Previously, the customer had arranged finance through Reality Finance Solutions. With this in mind, the company Director approached the Reality team once again for support and advice. Having established that they could arrange asset finance for plant and machinery and understanding that the company Director was interested in the Regional Growth Fund (RGF), Reality Finance recommended Close Brothers Business Finance to discuss funding options.
Regional Growth Fund
Following an initial meeting to discuss the business needs, Close Brothers suggested that the company could be eligible for a grant from the Regional Growth Fund.
Close Brothers guided the company through the application process, helping them to receive £40,000 of RGF funding towards the company’s new assets.
Close Brothers was then able to offer a Hire Purchase agreement for the remaining funding required to purchase the new assets.
Plans for growth becomes a reality
With the funding in place, the business has been able to expand their product range to include cider, beer and soft drinks. This has increased its production capacity for bag and box products, which has helped them to seize new opportunities for growth. As the business grows, they intend to take on four new employees later in the year.
The company Director said: “We saw a shift in the marketplace and we wanted to be able to respond quickly so the speed of funding was very important to us.
“Close Brothers Business Finance helped guide us through the RGF application process swiftly and easily. Close Brothers was able to access regional growth funds when other lenders were not.
“As a result of the funding, we have been able to rapidly expand our business without limiting our day-to-day cash flow. It has enabled us to introduce new lines to our product range and made our plans for growth a reality.”