UK clothing manufacturer reaches growth milestone following Time Finance partnership
LS Manufacturing, one of the UK’s few high-end clothing manufacturers, is on course to achieve £4m turnover after successfully navigating a period of growth with support from a tailored £400k invoice finance facility with independent lender, Time Finance.
The British-born clothing company used the funding to overcome the cashflow pressures associated with large, resource-intensive projects, helping to convert a strong order book into sustainable growth.
Founded in the 1950s, the Wolverhampton-based fabrics specialist produces premium garments for iconic British brands alongside a growing export market.
Having achieved £3m turnover in its most recent financial year, the business was experiencing the pressures of servicing large contracts while meeting weekly payroll obligations.
Time Finance provided a tailored invoice finance facility designed to release working capital from unpaid invoices, bridging the gap between customer payment cycles and payroll commitments. The SME lender was also able to successfully recover £10,000 of £11,000 debt when a US client went into administration.
With stable cashflow and a strong platform for expansion, LS Manufacturing has reached a stage where the business no longer requires the facility. The business is now focused on expanding its domestic and export order books, 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.”
Phil Chesham, managing director of invoice finance at Time Finance, comments: “LS Manufacturing is a brilliant example of a resilient, high-quality British business that simply needed a financial partner who understood its operational rhythm. Manufacturing carries unique pressures such as weekly payroll, and when these conflict with large, monthly or quarterly client invoices, it can cause problems. By tailoring an invoice finance facility specifically to their ledger, we’ve been able to unlock the working capital earned, providing the breathing room needed to scale sustainably.”