Press release
Lloyds TSB Commercial Finance provides the Ultimate funding solution for growing firm
LLOYDS TSB Commercial Finance has provided a £14 million facility to Bristol-based cashflow financing firm Ultimate Finance, which provides financial solutions to SMEs.
The back-to-back financing facility will help Ultimate Finance expand and increase the size of its sales team.
Brian Sumner, chief executive of Ultimate Finance, said: "Prior to signing up with Lloyds TSB Commercial Finance we used a traditional overdraft facility but we found this very cumbersome to administer.
"Therefore, we decided to practice what we preach and approached Lloyds TSB Commercial Finance to arrange a back-to-back financing facility, and at the same time transfer our banking to Lloyds TSB Corporate.
"More and more businesses are recognising that there are many alternatives to traditional overdraft facilities to help keep the cash flowing in smaller businesses.
"In recent years, asset-based lending (ABL), which includes invoice discounting and factoring, has become the preferred means of controlling cashflow for businesses in a wide range of sectors from manufacturing and printing to recruitment and distribution.
"We will use the financing facility supplied by Lloyds TSB Commercial Finance to grow Ultimate Finance. We aim to move to new premises and take on a number of sales advisers."
Mike Whitby, senior client manager at Lloyds TSB Commercial Finance, said: "The fact that Ultimate Finance which operates in this market has approached us for funding demonstrates that ABL has become mainstream.
"Some 20 years ago, it had limited popularity among businesses because it was, incorrectly, viewed as an option purely for companies experiencing difficulties. Today, asset based lending is a fundamental financing solution. In fact, total ABL advances have doubled over the last five years according to the Factoring and Discounting Association."
Peter Sobey, relationship director at Lloyds TSB Corporate, added: "Ultimate Finance is a very exciting business that is really going places and I am delighted we have developed a close working relationship that will help it achieve its goals."
Brian Sumner has worked in factoring and invoice discounting for 35 years, being a director of Alex Lawrie Factors before founding Boston Financial Company Limited. He also founded Causeway Invoice Discounting Limited, which was subsequently sold to NM Rothschild & Sons Limited.
ENDS 25 November 2004
Issued by Harrison Cowley on behalf of Lloyds TSB Commercial Finance and Lloyds TSB Corporate
MEDIA CONTACTS: NEIL FRASER OR HELEN McCULLOCH ON 0117 929 2311
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
