Arbuthnot Commercial Asset Based Lending (Arbuthnot Commercial ABL) has structured and delivered a flexible funding facility for Chesneys Ltd, one of the UK’s leading suppliers of luxury fireplaces and stoves. The funding package, which comprised both invoice discounting and stock finance, provides working capital to support the business in realising its significant plans for growth.
Founded in 1977, Chesneys has expanded exponentially in both scale and scope, from the restoration of antique fireplaces to the reproduction of fireplace designs and most recently, the launch of a new range of outdoor barbecue heaters. 2016 saw Chesneys secure an investment from Business Growth Fund (BGF) to fund a rollout of additional showrooms and further expansion into the US and China.
Today, Chesneys has a rapidly expanding trade sales arm and its products are sold through over 200 authorised dealerships in the UK, Europe, Middle and Far East and North and South America. The business has further extended its scope with a new build and architectural services division.
Andrew Rutherford, commercial director, Arbuthnot Commercial ABL, said:
“Chesneys is a dynamic and growing business and we look forward to supporting the team at every phase of the company’s continued expansion. Our focus, as always, is to deliver the optimal level of funding against a client’s assets and this was very much the case in respect of the stock finance piece within this transaction. We are seeing more stock-driven deals than ever before and anticipate that this will continue to be a feature throughout 2019, as businesses look to their increasing inventory asset bases to fund their growth and secure new opportunities.”
Paul Nichols, finance director, Chesneys, said:
“This is our first asset based lending deal and Arbuthnot Commercial ABL provided certainty to the credit process by having the decision makers come to see us, rather than sitting remotely at a head office. With Arbuthnot Commercial ABL, you can be confident that you are dealing with a whole team committed to getting to know you and making things work for you, not only for them. That’s partnership.”