A technology business has secured an asset based lending (ABL) package from Lloyds TSB Commercial Finance to target international markets and build a brand new head office.
Established in 2004, IC Blue supplies electronic components to UK and international clients including IBM, Siemens, Farnell and Tyco.
It sources board level electronic components, such as microprocessors, memories and semiconductors, for distributors and manufacturers operating in the automotive, aerospace, medical and consumer electronic products sectors.
Directors Matthew Ward and Andrew Lucas started the business from a spare bedroom, selling just to distributors.
It reached a £500,000 turnover in its first year of operation, before shifting its focus to UK and international original equipment manufacturers (OEMs).
Five years later, the pair have achieved a £3 million turnover, employ 17 people and inhabit 2,500 sq ft offices.
Now, as part of its continuing expansion strategy, the firm is planning to construct purpose-built head offices with a warehouse and testing facilities.
It also intends to target new overseas markets by opening offices in Greece, Hungary, Poland, Turkey and Asia.
To fund its ongoing plans for growth, IC Blue approached a number of banks in search of a suitable ABL facility.
The business opted for Lloyds TSB Commercial Finance, which devised an invoice discounting facility enabling the company to release the value tied up in its sales ledger.
The addition of debtor protection to the facility also ensures the firm is safeguarded against the possible failure of its debtors.
Matthew Ward, director at IC Blue, said: “Operating across a number of countries and markets has meant we have remained well-insulated from the global economic downturn, which puts us in a good position to pursue our expansion plans.
“Up until this point, IC Blue has been completely self-funded. However, Andrew and I realised that we would need to increase working capital to push the company forward and fulfil its potential in international markets.
“There’s lots of noise about small businesses struggling to access funding, but we were impressed by the speed at which Lloyds TSB Commercial Finance was able to provide facilities that match our requirements.”
Charlotte Jackson, regional manager for Lloyds TSB Commercial Finance, said: “By operating across international markets and accessing a global pricing strategy, IC Blue uses favourable exchange rates to offer best prices to UK manufacturers.
“We are pleased to be able to support such a dynamic UK company that is successfully executing a well-researched and profitable business model.
“ABL is an ideal funding package for IC Blue, as borrowing against existing assets will ensure the firm maintains a good level of working capital to continue its growth strategy. Debtor protection has also provided the company with security in the knowledge that it is insured against any potential bad debts.”