Trading since 2005, Growing Beds Recycling Services Ltd operates a wood recycling and composting yard. The business supplies recycled wood chippings to wood board and card board manufacturers and works with local authorities, organisations and private individuals across the UK by providing high quality recycling and processing techniques to help achieve large-scale recycling targets.
Due to three consecutive years of warm winters, coupled with cheap imports from Eastern Europe, there was an oversupply of recycled wood and the company wasn’t able to sell its wood chippings on for a profit.
The company already had a plan to supply wood chippings to a local biomass power station, but they needed financial assistance to put their plan into action. The power station required a long term source of wood chippings and was willing to pay a reasonable price. As the power station required a large volume of wood chippings, Growing Beds would need to invest in new equipment.
It was a difficult trading period for the business and so they sought financial advice from Close Brothers Asset Finance. Chris Etherington, Regional Sales Manager and Stewart Jones, Credit Manager visited Growing Beds site to discuss funding options with the company Director, Mark Evans. They also visited the power station to ensure the planned strategy would be financially viable.
Having listened to the Mark’s proposal, Chris and Stewart worked together to create a suitable deal. Growing Beds met the criteria to be eligible for a Regional Growth Fund grant and following a successful application, the funding was used to enable the deal to have the required deposit.
The deal that Chris and Stewart structured for Growing Beds offered security for Close Brothers Asset Finance by reducing the likelihood of any loss and helped the customer to buy the new assets to fulfil the new contract.
Through the RGF grant, Growing Beds have safeguarded 8 jobs and created 4 more. This is a great result for all concerned and a success story that jobs will be created in a rural area.
Mark Evans, Director at Growing Beds said: “After difficult trading conditions and a lot of uncertainty, it was a great relief to gain the financial support through RGF and see our proposed plans come to fruition. We couldn’t have done it without the help of Chris and Stewart at Close Brothers and we are delighted to be able to support the local job market.
“We would like to express our thanks to Close Brothers for helping us to achieve such a positive outcome and making the process simple and straightforward. This can only bode well for future business opportunities.”