We have been delighted to help support the ambitions of global poultry supplier Central Packing Ltd with a tailored Invoice Finance facility since 2016. Starting with providing the business with the right funding when they needed it the most, we continued supporting them through impressive periods of growth. So much so that the company is now in the enviable position of being able to support its needs without our facility. And although it’s always sad to see relationships end, the immense pride of having been a key player in a business’ journey to growth is the ultimate reward for our teams. Today we look back at Central Packing’s journey with Ultimate Finance and how our Invoice Finance solution helped transform the business into a major player in its industry.
Meeting the funding partner of choice
When Alex first discovered Ultimate Finance, the business had just changed direction and needed to offer credit terms to most of their customers if they wanted to meet their growth aspirations, which was bound to create added pressure on their cashflow. Knowing they would require funding to keep moving, they explored several options, and it was through the support and expertise of Regional Director Alastair Logan that they accessed structured funding to meet their needs thought the mechanism of an Invoice Finance solution. Alex explains, “The way in which Ultimate Finance personally went through everything in a very easy to understand and systematic terms gave the directors the confidence that we could partner with this funder to kickstart the next stage of the company’s development”.
With the terms of the facility agreed, we matched the business with one of our dedicated Relationship Managers whose role it is to ensure the facility meets the needs of the business. Alex continues, “Within weeks of working with Ultimate Finance, our Relationship Manager Dec Peers was always ready to help, support and offer advice as and when we needed, which really made the transition to Invoice Finance stress free and enabled us to really concentrate on what we do best, which is focusing on our customers’ needs instead of worrying about our cashflow”.
Unlocking growth with Invoice Finance
When we first met Central Packing Ltd, they were looking to overcome the challenges of increased demand from existing customers and the impact that offering credit terms to their client base would have on their cashflow. The tailored Invoice Finance solution offered not only the access to the funds they needed but also the breathing room and peace of mind they longed for to grow the business the way they envisioned. “Even though at the time our turnover was approaching circa £2m per year, offering credit terms without the facility from Ultimate Finance would have meant turning away clients despite their good credit risk”, Alex explains.
With the business able to grow as planned using their funding, the directors and management team were free to look further into the future of the company. Wanting to fully concentrate on the European, South American and Asian importing side of the business they took the decision to close the production factory a few years ago: “The move radically reduced our cost base and offered us far greater flexibility. We were able to partner with much larger manufacturing business for greater economies of scale, infrastructure and personnel which generated a better net profit. We also found that we did not have all the out goings and stock holding that comes with a processing factory”.
Further organic growth stemmed through this transformation of the business, so much so that by the end of 2019 they had outgrown the need for the Invoice Finance facility for cashflow but still used its Debtor Protection feature. With uncertainties surrounding Brexit and the emergence of the COVID-19 pandemic they decided to keep the facility in place to protect the business from any negative impact. The company has kept on growing over the last 20 months, now boasting an impressive £8.5m annual turnover, and although the impacts of Brexit and the pandemic are not yet behind us, the company has a clear enough picture of its future to no longer need the security and support of the funding facility.
Relationship Manager Dec adds, “Over the years we have developed a strong relationship and both sides knew that our journey together had come to a natural end. The team at Central Packing have taken the business to such great heights, and to know that our support helped getting them there is extremely rewarding”.
Looking at the future
Looking ahead to the next few years, the business is remaining focussed and protecting itself from any adverse effects with a Customer Trade Insurance policy with the support of credit insurance broker Avenue Insurance Partners. Alex explains, “There will still be challenges as we are not yet clear of COVID and there are still quite a lot of process and procedures that need to settle down when exporting and importing from Europe, but we will meet these head on as always, although this time with the benefit of being a reasonably cash-rich business”.
And should a new venture lead to a renewed need for a funding partner they already know where to look for support: “I have spoken at length with Dec and there are so many solutions that Ultimate Finance offer that I am sure we will be speaking again soon to potentially take advantage and work with them again”.
Dec adds, “It’s great to see the business can rely solely on itself for its cashflow needs, and we know that this doesn’t necessarily mean the end to our relationship with Alex and his team. Businesses keep on moving, and ambitions evolve. Should they need a new piece of machinery in the future they already know we can support quickly and efficiently with its acquisition through one of our Asset Finance solutions, or should they need a Bridging Loan for the business we’ll be able to get them a decision in principle within one day and a fully credit backed offer within 72 hours. I look forward to keeping in touch with Alex and the team regularly, as after six year of working together I’m keen to see what’s next for them”.
Find out more about our range of flexible funding solutions and discover how they’ve already helped businesses of all sizes and sectors meet their ambitions.