Fueling A Bakery’s Growth: Funding That Helped Them Rise and Thrive
Introduction to the deal: The client is a fourth-generation family-owned bakery. Known for their established retail presence and growing wholesale division. Historically profitable, recent economic challenges, including rising energy and commodity costs had impacted their financial performance. Despite successfully navigating the pandemic they continued to experience cash flow challenges. As they worked towards recovery, the business required funding to support their cash flow and fuel their growth strategy. Their wholesale division, which works with a small number of large clients, had significant potential for growth, but the longer payment terms from these clients made managing working capital difficult.
What we did: We provided a £500,000 confidential invoice finance (CIF) facility to resolve their delayed payment times and offer immediate cash flow relief. The additional cashflow was used to support the expansion of their wholesale operations. Due to the rapid growth of the business, they also needed to invest in large scale mixers, kettles and ovens to meet the increased demand of orders. To solve this, we leveraged our multi-product offering and supplied a £130,000 asset finance facility, enabling them to acquire the industrial kitchen equipment they need. This investment will significantly speed up their baking process, helping them meet rising demand more effectively while further enhancing operational efficiency.
The bakery was in discussions with another lender, but our ability to offer a multi-product solution—including both invoice finance and asset finance—was a decisive factor in securing the deal.
Outcome of the deal: The combination of the invoice finance and asset finance facilities provided the business with the financial stability and resources they needed to support their growth. With improved cash flow and enhanced production capabilities, the business can now take on more clients and increase their profits. Our ability to offer a bespoke, multi-product solution ultimately secured this important client and positioned their business for continued success in a challenging market.
