A Liverpool-based business has utilised a major invoice discounting funding deal from Skipton Business Finance to help overcome its post-COVID-19 challenges and move to a larger facility, supporting the business’s continued growth.
Timber packaging specialists PEC Packaging Ltd effectively utilised a £2.5 million invoice discounting funding line following a drop in demand in the automotive industry caused by COVID-19.
As was the case for many UK manufacturers, the effects of the pandemic led to a downturn in demand which was quickly followed by liquidity issues due to unpaid customer invoices.
To support cashflow management and resolve short-term liquidity concerns, PEC turned to Skipton Business Finance, who were able to provide the business with a funding line of £2.5 million.
Tiernán Rice, Finance Director at PEC Packaging said:
“The invoice discounting support provided by Skipton Business Finance has truly transformed our business.
“As our core customers operate in the automotive industry, COVID-19 caused many financial headaches for us due to a lack of demand for products and it soon became apparent that well-managed finance support was needed to help the business through challenging times.
“As the market began to recover, we were able to use the working capital provided to support plans to scale up significantly, taking on additional staff to service our ever-growing customer base.
“We have also been able to move to a larger site at Brunswick Dock, Liverpool which provides us with the extra production capacity required to support our plans for growth.”
PEC Packaging is an industry leader in timber packaging products and manufactures one of the largest ranges of packaging products in the UK. Founded over 35 years ago, it supplies numerous multinationals including Jaguar Land Rover, Nissan UK and Siemens.
Peter Heyes, Senior Relationship Manager at Skipton Business Finance says:
“We’re delighted to have been able to provide PEC Packaging with suitable finance to help the business recover from the issues which the pandemic has caused for so many reputable manufacturers.
“We work across a diverse range of businesses across a variety of sectors, but being able to monitor and mitigate the financial risk for PEC Packaging and seeing how it has helped the business grow over such a long period gives us a real sense of true customer satisfaction.
“The invoice finance solution we provided has given the firm all the right tools to move forward and effectively manage its finances independently.”
http://www.skiptonbusinessfinance.co.uk/