UK clothing manufacturer achieves growth following Time Finance partnership

Facility Type: Invoice Finance

Region: Wolverhampton  / Global

Facility Value: £400,000

Introduction to the deal

Founded in the 1950s, Wolverhampton-based LS Manufacturing is one of the UK’s few remaining high-end clothing manufacturers. The fabrics specialist produces premium garments for iconic British brands while serving a growing export market.

Despite a strong order book and annual turnover of £3 million, the business faced a familiar challenge for ambitious manufacturers; growth was putting pressure on cashflow. Large, resource-intensive projects and a concentrated customer base meant that monthly and quarterly customer payments often conflicted with weekly payroll obligations, creating severe short-term funding pressures that traditional high-street lenders struggled to support.

What we did

We took the time to understand the unique operating rhythm of the business and structured a flexible Invoice Finance facility tailored to LS Manufacturing’s requirements. The facility was designed to:

• Unlock working capital from unpaid invoices to bridge the gap between customer payments and weekly payroll;
• Ease the cashflow pressures associated with a reliance on a select group of clients;
• Give the business financial freedom to access funds when needed, without the restrictions imposed by traditional lenders.

Beyond providing funding, we acted as a hands-on partner. When one of LS Manufacturing’s US customers entered administration, the team successfully recovered £10,000 of an £11,000 debt, protecting valuable working capital.

The Outcome

The facility provided the stability and headroom needed for LS Manufacturing to turn strong demand into sustainable growth. With payroll pressures removed and cashflow fully optimised, the business was able to strengthen its operations, expand its domestic and export markets and continue investing in the future of British manufacturing.

Having successfully used Invoice Finance to support a period of rapid expansion, LS Manufacturing has now reached a stage where the business no longer requires the facility. The funding solution fulfilled its purpose, enabling the company to build a stronger financial position and establish a platform for continued growth.

Today, LS Manufacturing is focused on further investment, preserving vital British manufacturing skills and planning a move from its traditional mill premises into a more modern facility.

Daljit Mehat, Managing Director at LS Manufacturing, commented: “Our business suffered a unique problem; we were overtrading and our cashflow couldn’t keep up. We have worked with traditional high-street lenders in the past, but they lacked the agility we needed and forced us into working with restrictive management consultancies. Switching our facility to Time Finance changed everything. The flexibility to withdraw funds exactly when we needed them gave us total stability. They’ve been a genuine partner throughout, and very easy to deal with. With this financial headroom, we now look forward to investing further in the business and potentially entering new premises in the coming years.”