Alternative finance provider makes growth child’s play for family firm
Alternative lender Creative Capital has provided over £1m in trade finance facilities to a manufacturer of children’s travel systems.
From its headquarters in Llanelli in Wales, ickle bubba designs and supplies a range of high-specification baby and toddler products including pushchairs, car seats and highchairs that are stocked by retailers including Tesco, Costco, Mothercare and Argos.
The business turned to the alternative finance market after being turned down by the high-street banks due to their start-up status and worked with independent provider Creative Capital to put in place short-term trade finance agreements.
These facilities loan against the value of finished products, advancing the working capital needed to manufacture goods in China and transport shipments to the UK for distribution.
The funding has enabled ickle bubba to take on bigger orders, with turnover now expected to double to £2.2m over the next 12 months. The business currently employs 15 people and this number is expected to rise as it continues to grow.
With a weakened pound following the EU referendum decision, ickle bubba now has plans to export internationally and is considering moving elements of the manufacturing process from China to the UK.
Fran Vaughan, managing director of ickle bubba said:
“We’ve come a long way in a relatively short space of time by tapping into a demand for products which are affordable but don’t compromise on style, features or safety.
“We have big plans for the business so a reliable source of working capital is essential for us to manufacture and ship products at the volume and to the timelines required by major retailers.
“Creative Capital’s trade finance facilities ensure we can move quickly when opportunities present themselves and the funding has become key to our ongoing growth strategy.”
Keith Bolton, director of trade finance at Creative Capital, said:
“ickle bubba is a perfect example of the ambitious, innovative and industrious SMEs that will continue to be so vital to the UK’s prospects.
“Now, more than ever, it’s important that these businesses can quickly access the funding they need to capitalise on growth opportunities here and abroad.
“We’re proud that the £1m we’ve advanced to ickle bubba has helped them unlock sizable new opportunities that have driven growth and job creation.
“Many lenders don’t provide trade finance on a one-off basis to SMEs as it’s often seen as too laborious to structure facilities for a smaller customer.
“ickle bubba’s success serves as a great reminder that entrepreneurs who have been frustrated by high street banks should look to the alternative finance market where there are a wide range of innovative short-term, tailored and flexible facilities capable of bridging potential funding gaps.”
