Keeping a great British name on the road
The UK has a history of building cars and motorbikes stretching back well over a century. In recent years, a recognition of the potential of the old marques has led to many historic names being revived.
“Nostalgia may get drivers interest - but quality engineering gets the sales”
One manufacturer that was a favourite with enthusiasts around the world - and which seemed lost for good - has undergone a surprising renaissance in the past decade. Under a new company, production of both revised and entirely new models has started. With a real affection for the name supported by quality engineering, the new business is enjoying considerable success, with a thriving home market and healthy exports.
A hump in the road
The business employs a growing and highly-skilled workforce and provides considerable additional work for a growing number of component manufacturers.
However, relatively low-volume engineering manufacturing in the UK can be at a disadvantage compared with the high-volume automated production enjoyed by overseas manufacturers. Tight control of costs is essential and, although the business is profitable and can call on government grant support for some projects, cash flow needs to be carefully supported.
Taking finance up a gear
The key to this is Invoice Finance. Many businesses that work by supplying other businesses face numerous problems with late payments. In the case of vehicle manufacturers, it may take months between the assembly and despatch of a product and the final payment being received from the dealer who has sold it to a customer. It means that a great deal of money must be invested in stock for long periods before a return can be enjoyed.
Invoice Finance can provide a solution which avoids the need for this costly investment and accelerates the flow of cash through the business. With an Invoice Finance arrangement, a lender will provide a cash advance as soon as an invoice is issued by you. This can mean that a manufacturer will receive 90% of the value of each invoice they issue when they issue it, with the remainder coming through once the client pays, less the lender’s fees for the service.
Staff and suppliers of all kinds can be paid, and the way is paved for the growth of the business.
However, the business depended on smooth service from its Invoice Finance provider and faced a potential crisis when their funding provider abruptly ceased trading.
Back on the accelerator
Fortunately, at Rangewell, we were able to step into the gap and find an alternative provider eager to help after the failure of the original lender. The funding required was substantial - a facility offering £1/2 million a month was required – but, thanks to our contacts across the entire UK lending market, we were not only able to find a new lender to offer the scale of funding required, we were able to do it at a cost below that of the original supplier too.
The future of a much-loved brand once again looks bright and, at Rangewell, we are proud to have helped. If you think Invoice Finance could be the solution your business is looking for, apply today or find out more with Rangewell.