Alton Pump targets growth with new funding facility
Alton Pump Services are one of the leading pump service suppliers and manufacturers in the UK. Based in Hampshire, the business boasts a combined experience of more than 120 years in the pumping industry, across their four principal engineers who use their skills and expertise to tailor solutions to their clients throughout the UK, Europe, the former eastern bloc and the Caribbean.
The firm offers pump manufacture, installation and services for both the commercial and domestic sector to a variety of customers ranging from the general public to waterboards to national housebuilders.
Having enjoyed phenomenal growth over the years they had ambitious plans to continue growing the business. However, the firm found themselves in a difficult position as a result of their aggressive expansion strategy. Their financial performance was impacted when overheads quadrupled as the firm acquired more assets and premises and they found themselves carrying too much slow-moving stock. At the same time, their incumbent funder – a high street bank – was undergoing a review of their lending and with a reduced appetite called time on Alton Pumps.
As Jason Horn, director of Alton Pump Services said “Our Bank used to be our first port of call but with a diminishing appetite to fund our business, we needed to look for a more flexible funder who would support our strategy through good times and bad. We took the difficult decision to enter a CVA to give the business the best chance of moving forward. Key to the success of this was the ability to get a finance package in place quickly which would help us repay our existing funder and move on.”
Alton Pumps were taking advice from Business Advisory firm, Quantuma, who immediately recommended Pulse Cashflow Finance who upon reviewing the business made a credit backed offer demonstrating their support for the business. Pulse Cashflow were able to put in place a £300k funding facility in the time required.
As Jason continues: “Pulse Cashflow responded really quickly and were straight talking and transparent. Their flexibility was exactly what we needed. With the commitment of funding in place, we were able to work through the CVA and move forward with our new business. We also successfully sold back £150k of stock to our suppliers giving us an additional cashflow boost. Their fee structure also helps us to plan more effectively as we can accurately predict the cost of our funding on an ongoing basis because they operate a single fixed rate fee so there are no hidden charges. I feel in control of the reins again. We have access to an ongoing source of working capital to help us take advantage of opportunities.”
As Toni Dare, managing director of Pulse Cashflow Finance concludes “We were really happy to step in and support what is a good business who were suffering the challenges that success and growth can bring. We work hard to deliver flexibility to our clients because we know that each and every one of them is different with their own set of requirements. Jason and the team can now move on with their business plans comforted by the fact that they have our support.”