Paragon provides £785,000 funding deal
Paragon Bank has provided a £785,000 finance package to support the acquisition of Exeter-based logistics business, STR Logistics, following the retirement of the owner.
STR Logistics specialises in distribution, contract management, logistic and supply chain solutions, tail lift delivery and secure high value freight handling.
The deal was brokered through Ignition Credit, a leading UK provider of vehicle and asset finance for SMEs. Based in Truro, Ignition Credit was able to use its regional expertise to provide tailored support to STR Logistics.
Established 20 years ago, STR Logistics employs 100 people, providing logistics services across Devon and Cornwall. Originally family-run, the firm’s owner retired last year and STR Logistics was taken over by new managing directors, Anthony Quinn and Peter Adams, who between them have more than 60 years’ experience in the sector.
To support the transition, Paragon provided a combination of invoice and asset finance funding. The asset finance funding, valued at around £485,000, financed more than 46 vehicles. The invoice finance deal was worth £300,000 and supported a smooth takeover of the business.
Anthony Quinn, managing director at STR Logistics, said: “The support that Paragon was able to provide has been vital in ensuring a smooth transition when we took over in February. This included a sales and leaseback agreement for three quarters of our fleet as well as the resources to keep the business going.
“We found the team at Paragon to be very efficient and our contacts were helpful and easy to work with, taking the time to really understand our vision for the business.”
Adrian Taylor, head of invoice finance at Paragon, said: “We pride ourselves on offering a flexible, tailored service, so we are really pleased that we were able to support STR Logistics during this transitional phase.
“There are many benefits to working with one lender to access both asset and invoice financing. This is so much simpler and involves one underwriting process, one set of legal documents and one single point of reference for our customers. We’re pleased that Anthony and Peter had such a positive experience working with Paragon and look forward to working with STR Logistics in the future.”
Russ Nicholls, business development manager, asset finance at Paragon, said: “Through the excellent relationship we have developed with Ignition Credit, we have been able to facilitate the most appropriate funding option for Anthony and Peter.
“The funding package we agreed with STR Logistics involved quite a complex transaction as we had to physically inspect over 40 assets at various locations. This process was made easier by working with a local broker, which meant we benefited from their regional expertise and hand-on approach.
“Through working closely with both our introducers and customers, we remain entirely committed to supporting the SME market with refinancing options that will assist their growth plans.”