The electrical cable supplier plans for future growth with £4 million funding package

The company supplies a wide range of electrical cables to UK electrical wholesalers and was established in November 2010.

Since inception, Expert Cables has experienced significant demand and after just four months, moved to a 23,000 square foot warehouse.

The company, which employs seven people, has also achieved preferred supplier status for a number of electrical buying groups, an accolade which is more often bestowed on long-established businesses.

These new routes to market meant Expert Cables had to support large orders for businesses such as City Electrical Factors, the UK’s leading electrical wholesale network, which supplies 400 branches around the UK.

In order to cater for these customers, the business required a funding facility to boost day-to-day cashflow and bridge the gap between shipping orders and receiving payment, whilst leaving money aside to invest in future growth.

The £4 million factoring facility from Lloyds TSB Commercial Finance has put Expert Cables in a strong position to capitalise on demand, as the funding is based on issued invoices and grows in-line with sales. As a result, the company is on track to take turnover to £15 million in the next year.

The business is now planning on expanding its product range to include solar panel cables and fire-proof wiring which are popular for use in schools and hospitals.

Expert Cables also secured a debtor insurance facility from Lloyds TSB Commercial Finance to safeguard its issued invoices, allowing it to trade confidently.

Andrew McKenna, managing director of Expert Cables, said: “We started the business with a strong base of sector expertise, which, coupled with our focus on customer service, has meant we have secured preferred supplier status for a number of well-respected electrical wholesalers.

“Due to this sustained level of demand, which is rising rapidly, we needed a funding facility to provide financial headroom to enable us to service day-to-day orders and also finance our expansion ambitions. In November 2011 we will be having a SWA rewind and cutting machine installed which cost £60,000. This will enable us to sell SWA cables at any length required by our customer.

“Without the finance from Lloyds TSB Commercial Finance, we wouldn’t have been able to grow at the rate we have, in-line with our sales, or be in such a strong position for the future.”

Terry Brown, regional manager for Lloyds TSB Commercial Finance, said: “Factoring is ideal for a start up business like Expert Cables, which has experienced high levels of demand early on. As the product is directly linked to a firm’s debtor book, the larger the asset pool, the more funding a business has access to.

“With a relatively small staff base, Expert Cables can also benefit from the factoring facility’s in-built credit control function, which chases issued invoices on behalf of the customer.

“Andrew and the team’s success is testament to their hard work and drive to succeed. By utilising a dynamic finance package, the business is on the path to future growth.”

November 2011