Wychwood Forest Products was set up in early 2022 and provides timber products to merchants in the UK. With timber sourced from both Canada and Europe, the business was on the lookout for a funding partner that could help unlock rapid growth through the provision of strategic funding and reached out to introducer Neil Galer at Hilton Baird.
Neil introduced the directors to Ultimate Finance’s Regional Director Chris Mitcham who made it his priority to understand the people behind the business, their ambitions and the challenges they could be up against so that he could tailor the right funding solution to help keep their business moving at speed.
Chris explains, “At Ultimate Finance we do things a little differently: we put the needs of business owners first and listen to them to understand what the right funding might look like for them. In this particular instance, it was clear to me that the business would greatly benefit from a solution that combines Invoice Finance to help with the day-to-day cashflow pressures of a new business and Trade Finance to help when ordering from international suppliers with whom the business does not yet have a long history”.
Chris worked with Ultimate Finance’s Trade Finance expert Beth Taylor and the underwriting team to tailor a £375k solution made up of a £250k Invoice Finance funding line and a £125k Trade Finance facility. The Invoice Finance facility will allow for working capital to build quickly by unlocking the cash tied up in invoices yet to be paid rather than wait for clients to pay at the end of their agreed credit terms, which will help the business grow at a faster pace. The Trade Finance facility will provide a simple yet essential way to bridge the gap between paying to export the timber and delivering it before they can invoice clients, allowing for more orders to be fulfilled and, ultimately, an expanding client base.
Chris adds, “Trade Finance is a great way to support working capital requirements and pairs itself well with Invoice Finance. In short, Ultimate Finance pays the business’ suppliers upfront to allow for the order to be placed, and the repayments are deducted from the invoices raised through the Invoice Finance solution preventing unnecessary paperwork and effort”.
Additionally, Trade Finance unlocks more than just day-to-day funding. A business’ purchase power is greatly increased via the solution with no impact on their working capital, and many suppliers provide reduced costs or preferential rates for bulk-buying and early payments, which Trade Finance can unlock easily. For businesses, it also means increased profit margins, with the added bonus of building a good reputation with suppliers in their industry.
With the facility in place and access to the funding and support they need, Wychwood Forest Products is now working on growing in line with their ambitious forecast.
Find out more about our range of tailored Working Capital funding solutions and how they help keep businesses moving.