Invoice Finance facility provides Battery Distribution Group with cash flow for growth

A Birmingham-based business which distributes automotive batteries is set to increase turnover by 50 per cent over the next year after securing a £1.5 million invoice finance facility from Lloyds TSB Commercial Finance.

Established in 1998, the company supplies car accessory shops across the country, as well as logistics providers and commercial freight firms.

The business has grown rapidly since inception and currently employs 28 people across three warehouses in Exeter, Portsmouth and Birmingham.

Due to the seasonality of the automotive battery industry, the company found it needed a funding boost to increase the amount of stock held to deal with rising customer demand in the busy winter months.

Battery Distribution Group secured a £1.5 million invoice finance facility from Lloyds TSB Commercial Finance after approaching the funder to discuss its cash flow requirements.

Now the business is in an excellent position to increase turnover to £6 million in the next 12 months. After recently employing eight new members of staff, the firm also hopes to take on more people as it continues to grow.

Wayne Daniel, who has been the managing director of Battery Distribution Group since the company was established, is confident that the business will continue to expand over the next year, picking up new customers and battery brands along the way.

“Like all firms we have grown from modest beginnings and I am proud of what my team has achieved over the last decade. We are now a national provider of every type of commercial and leisure automotive battery and our loyal customer base is testament to our competitively priced products,” he said.

“The funding from Lloyds TSB Commercial Finance has helped us maintain a strong inventory of products going forward to the busy winter period and we are now in a fantastic position to increase our turnover by 50 per cent.”

Jon Myerscough, associate director, business development at Lloyds TSB Commercial Finance, said: “Part of the secret to Battery Distribution Group’s success is a straight-forward business model, employed with dedication, confidence and a focus on customer needs.

“Many businesses operate in markets which experience a seasonal spike in demand and this can inevitably put strain on an otherwise healthy cash flow. Implementing an invoice finance facility is the ideal solution as it is secured against the company’s issued invoices and therefore grows in-line with sales.

“For a business to be predicting a 50 per cent turnover rise in this economic climate is fantastic and I am looking forward to continuing to work with Wayne and the team.”

December 2010