Asset Based Lending –
Arbuthnot Commercial ABL supplies the ideal funding fit for SFC (Europe) to boost growth in manufacturing sector
Arbuthnot Commercial Asset Based Lending (“ABL”) has structured and delivered a flexible working capital solution for SFC (Europe) Ltd (“SFC”) to support its progressive expansion plans. The comprehensive refinance package comprised of revolving receivables and inventory lines, as well as a CBILS term loan.
The market-leading manufacturer and stockholder of high-performance grade bolting sought a strong finance partner with the ability to provide the level of funding and flexibility to enable the management team to drive future growth and realise their vision for the business.
Established eight years ago and headquartered in Wolverhampton, SFC supplies exotic, stainless and high tensile specialist fasteners, nuts, bolts and ancillary products for use in safety-critical applications across the oil, gas, subsea, petrochemical, power generation and nuclear industries. All products are fully traceable and certified and SFC’s business model dictates that significant amounts of specialist stock are available for customers to draw-down on demand. Considered an ‘essential supplier’, the company is trading strongly, despite the negative impact of the Covid-19 pandemic.
Commenting on the transaction, Stewart Howarth, CFO, SFC (Europe) Ltd, said:
“We were experiencing issues with our previous lender’s rigid rules and structure and recognised that they would not be able to provide the flexibility of funding that we would need to meet our aspirations going forward. We engaged an independent adviser to introduce us to a more entrepreneurial and responsive finance partner with the capability of providing us with the necessary level of working capital that would expand with the business as it grows. Arbuthnot Commercial ABL proved to be the ideal fit. They were very switched on and demonstrated the level of understanding and business acumen that we were looking for in a finance partner.”
Michael Glover, Managing Director, SFC, said:
“Delivery is key to everything we do at SFC. Having specialist stock on the shelves with the right chemical and mechanical composition for our customers’ needs is mission critical. Arbuthnot Commercial ABL took on board our plans to branch out further afield into new geographic markets and to develop specialist product areas in which we can achieve a competitive edge. They structured an increased level of ongoing funding that will enable us to purchase the volume of stock to meet rising customer demand and allow us to invest further in new opportunities for future growth. To complete the deal so smoothly, just as we were emerging from the pandemic, was no mean feat.”
Andrew Rutherford, Commercial Director, Arbuthnot Commercial ABL, added:
“We are delighted to support SFC’s experienced leadership team with the funding required to power their plans for growth. This transaction underlines the importance of going into detail to understand the business and the versatility that asset-based lending brings to supporting their ambitions.
By unlocking the value tied up in the company’s existing asset base, we were able to release the quantum of working capital to help SFC achieve their growth aspirations. We look forward to working closely with SFC as they embark on the next exciting chapter of their business journey.”
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Registered in England and Wales no. 10915339. Arbuthnot Commercial Asset Based Lending Limited’s registered office is Arbuthnot House, 7 Wilson Street, London, EC2M 2SN. Arbuthnot Commercial Asset Based Lending is not authorised and regulated by the Financial Conduct Authority.