Manchester-based fashion start-up, Grandeur Clothing has secured a £400,000 invoice and trade finance facility from Bibby Financial Services (BFS) to support its growth.
Launched in 2017 by young entrepreneur Shahriya Miah, Grandeur Clothing started as an online-only retailer selling luxury menswear. But after recognising opportunities offline, the business shifted its model to wholesale and has achieved rapid growth since. Expanding into kidswear and ladieswear, Grandeur Clothing now partners with ASOS, TK Maxx, JD Sports and supplies other luxury labels.
After experiencing an influx of opportunities and growing orders in the pipeline, Grandeur Clothing approached BFS for support in funding customer orders and ongoing working capital.
With overseas suppliers in Pakistan, Turkey and Bangladesh, BFS has structured a combined invoice and trade finance facility to bridge the cashflow gap between buying from suppliers and receiving payment from customers. The trade finance will allow Grandeur Clothing to comfortably accept and produce orders, while BFS manages purchase payments with suppliers.
Grandeur Clothing expects to turnover £1.5m in the next 12 months, up 300% on its original growth plan. The funding facility from BFS allows the business to explore other opportunities to grow further.
Stuart Rowson, commercial director at Grandeur Clothing, commented: “As a fast-growing business still in its infancy, we found that while our order book was growing, it was increasingly difficult to pay our suppliers in advance and procure the materials required to meet growing demand. This meant we were sometimes limited to the number of opportunities we could pursue.
“With BFS’s trade finance facility in place, this will no longer hold us back. We now go into new supplier meetings with the confidence that we can pay for goods – and this security often brings cost down too. Sarah and the team have been excellent and we’re looking forward to growing with BFS.”
Sarah Williams, business development manager - north, Bibby Financial Services, said: “Trade finance is perfect for businesses like Grandeur Clothing, which imports from overseas. The combined package will help the business unlock the funds needed to fulfil orders, removing the day-to-day pressure of purchasing from suppliers while improving cashflow and growing sales.”
“The facility has allowed the business to realise its potential, accelerating its growth far ahead of schedule and we’re excited to see what the future holds.”