Close Brothers Asset Finance recently refinanced Liquipak Ltd’s assets using the Coronavirus Business Interruption Loan Scheme (CBILS) to inject cash into the business at a time when sub-contract work had temporarily seen a slow-down in activity.
Based in Huddersfield, West Yorkshire, Liquipak is a product packaging manufacturer specialising in a wide range of solutions for packing liquids, including the manufacture, filling and distribution of powerful cleaning agents.
Sam Evans, Area Sales Manager for Close Brothers Asset Finance’s Manufacturing division, explains more about the deal: “Liquipak originally used their cash reserves (cashflow) to buy the assets they needed, but during a brief lull in the sub-contract work found their hard-earned reserves were starting to be hit and sensibly decided to utilise their assets through refinance.
“We have been working with the Liquipak directors for some time – between them they have over 30 years’ relevant experience, and theirs is a real success story.
“During the Covid-19 pandemic trading increased substantially as demand for the bottling of hand sanitising gel and disinfectants accelerated – at one point they were packaging 80,000 bottles of hand sanitiser a day for a well-known supermarket on two bottle-filling lines along with another 100,000 to 150,000 units of their own products on another two lines.”
Simon Dickinson, Managing Director, added: “As every business owner knows, protecting cashflow is critical to success, as is the knowledge that customer demand ebbs and flows. Knowing this, it made sense to us to use our assets to protect our cash reserves, and having worked with Close Brothers Asset Finance before, we were confident they would be able to help us with our refinancing.
“We’re really pleased with the flexible way Close Brothers Asset Finance structured the deal, understanding the importance of keeping cash flow unaffected. This partnership approach is something we truly value - they clearly understood what we wanted to do and worked out a deal that suited our needs.”