Family-run retail business secures £500k funding to aid growth
Bibby Financial Services (BFS) has provided a funding package of £500k to Haddow Group Ltd., a West Yorkshire based clothing manufacturer which designs and supplies lifestyle products for some of the UKs top high street retailers.
Based in Bradford and founded in 1986, the family-run business produces a variety of interior, swimwear, nightwear and beauty ranges for retailers. Haddow Group Ltd. has experienced significant growth since its creation and now employs a team of around 60 experts, including designers, account managers and merchandisers, whose designs have featured in the likes of Vogue, Grazia and Glamour magazines.
As the business buys materials to manufacture its products, there is often a gap between covering these costs and receiving payment from its retail clients. In order to help manage cashflow, BFS has provided an Invoice Finance facility of £500k, which will release cash against outstanding invoices before they’ve been paid.
The funding will aid business growth as Haddow Group Ltd. enters its busy Christmas period, as well as provide financial support to develop new product lines.
Tristan Haddow, chief executive officer at Haddow Group Ltd., said:
“We approached BFS as we knew the team could support our business in a fast and hassle-free way. Our ability to effectively manage stock and source new clients is crucial to the growth of the business, so the Invoice Finance facility has been hugely beneficial, allowing us to concentrate on business development instead of waiting for outstanding payments.
“By relieving this cashflow pressure, we can continue to develop high-quality products, especially as we enter our busiest time of the year. It’s also important that our funding partner shares the same values as us. As BFS is also a family business, it understands a lot of our nuances that other lenders may not. BFS’s expertise within the retail sector also means it is excellent at accommodating the seasonality of our business, which is most active during the festive period.”
David McIntyre, corporate manager at BFS, said:
“Haddow Group Ltd. has developed an impressive list of clients, which it has accumulated by providing excellent service and producing quality products. As a retail business, there are many components in the supply chain to consider, from sourcing fabrics, to design, range planning and eventual delivery to the stores. The funding package will therefore alleviate cashflow challenges during this process, particularly when sourcing from suppliers. We’re confident it will help support the expansion of the company as it continues to win more business, particularly during the festive season.”
