UK-based Skipton Business Finance has extended a £2.5m ($3.05m) invoice discounting funding line to PEC Packaging to help navigate post-Covid-19 challenges.
These funds aimed to support cash flow management and address short-term liquidity concerns of PEC Packaging catering to the automotive industry. It has also enabled PEC Packaging to relocate to a larger facility, enhancing its growth potential.
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PEC Packaging finance director Tiernán Rice 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.”
The pandemic led to decreased demand and liquidity issues for many manufacturers, including PEC Packaging, which serves multinationals such as Jaguar Land Rover, Nissan UK, and Siemens.
Skipton Business Finance senior relationship manager Peter Heyes said: “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.
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By GlobalData“The invoice finance solution we provided has given the firm all the right tools to move forward and effectively manage its finances independently.”
In 2023, Skipton Business Finance, a subsidiary of Skipton Building Society Group, reported a record-breaking profit of £9.6m for the fiscal year, marking a 32% increase from £7.3m in 2022.
Additionally, the finance company facilitated £171.2m in loans and advances to clients in 2023, a 14% increase from £150.6m in 2022.
