Bibby Financial Services (BFS) has provided a £2.5 million Invoice Discounting facility to Martin Aerospace, a manufacturer of component parts for the aviation sector.
The facility will be used to fund the business’s growth by enabling more project work to be undertaken simultaneously.
Martin Aerospace’s debtors include notable aviation companies throughout the aerospace sector. The success of these businesses depends on niche manufacturers, such as Martin Aerospace, which supply state of the art components that meet the most demanding quality standards in the industry.
The manufacturing process of these products is carried out in its advanced workshops in Lanark, an area known as the industrial belt of Scotland, renowned for its engineering expertise.
Established in 1993, Martin Aerospace has grown strongly over the years and has ambitious plans for the future. However, it needed access to additional working capital to fund growth. Bibby Financial Services was able to provide the business with an Invoice Discounting facility, bridging the gap between paying suppliers and receiving payment from customers.
The extra cash means that the business can work on new projects without taking on extra debt, helping to grow revenues.
Lorna Gourlay, Finance Director at Martin Aerospace, said: “Our customers are high-tech businesses operating in dynamic and highly competitive markets, and depend on us to provide the cutting-edge components needed for their products. With demand steadily increasing, we required access to extra working capital to fund future projects.
“Not only will the funding line offset any cashflow strain that we’d previously experienced, it also gives us the opportunity to increase our output volumes. Historically, our cashflow limited the number of projects we could take on at a time. With access to additional working capital, the business can run more efficiently and serve more customers.
“The Corporate team at Bibby Financial Services showed a strong understanding of our business and its needs, and were able to provide a funding package tailored around us. The new facility means that we can release cash from invoices early, helping us to invest in the business. We look forward to working alongside them over the coming years.”
Ronnie Stokes, Corporate Manager – Glasgow, Bibby Financial Services, commented: “Martin Aerospace is a hugely successful business, and we’re pleased to have the opportunity to work alongside it, supporting its future growth. The flexible facility means that the amount of funding Martin Aerospace has access to will grow in line with its sales, so the business will always be able to access the working capital it requires to continue expanding.
“At Bibby Financial Services, we pride ourselves on having a detailed understanding of our clients’ businesses in order to structure a facility around their needs. We are keen to support businesses like Martin Aerospace as they work towards their growth aspirations.”