A family-run textile business in Huddersfield, whose clients include luxury brands such as Gucci, Pepper Grenoble and Moncler, has secured funding from Lloyds TSB Commercial Finance to service growing international demand for its products.

Established in the 1950s and run by the Wellings family, N Batley Ltd is a weaving company that specialises in tartan, check and worsted fabrics.

The business has a commission weaving division which manufactures all types of quality woven materials, from industrial fabrics to suits.

In order to meet rising demand for its products in the luxury brands market, N Batley needed to buy in additional raw materials. In order to do so without having a negative impact on its cash flow, the business approached an independent financial advisor for guidance on how to boost its working capital.

The IFA recommended Lloyds TSB Commercial Finance, who provided a factoring service to advance the value of the business’ invoices and bridge the gap between the time taken to produce its fabrics and the time when payment is received.

As a result of its enhanced cash flow, N Batley is also able to comfortably manage the seasonal peaks in demand for tartan and allows it to target new opportunities within its growing overseas clientele.

Samantha Townsend, director at N Batley, commented: “With some of our customers being based in France and Italy, this means that our payment terms can be extended to account for time taken to distribute our goods abroad.

“Commercial Finance quickly devised a funding package to provide additional working capital, which is vital in ensuring we can secure and complete new orders.
 
“By boosting our cash flow, Commercial Finance’s funding also means we will be able to bid for even bigger contracts and consider investing in new machinery, which will help to increase productivity and output.

“We have been delighted with the facilities and have already recommended them to a customer of ours who is in a similar situation to us.”

Charlotte Jackson, regional manager at Lloyds TSB Commercial Finance, said: “Operating in the seasonal fashion industry means that the tartan manufacturing division of the business experiences a high level of interest between March and June.

“The facilities we’ve put in place are flexible and tailored to meet the requirements of the company, which can release capital at a rate and scale which closely matches customer demand.

“Tougher economic conditions require flexible funding solutions and we are seeing more firms use ABL to strengthen their cash flow and quickly release the value tied up in outstanding invoices on their sales ledger.”

April 2009