Drinks wholesaler Interbev UK has secured a £9m funding package from Lloyds Bank to support its growth.
The business, founded by Stephen Brogan in 2008, specialises in the sale and distribution of UK and global drink brands such as Heineken, Guinness and Carling to distributors, retailers, hoteliers and pub chains in a number of markets around the world.
Interbev switching its banking facilities to Lloyds Bank Commercial Banking will help it to increase the amount of stock it can purchase to allow it to cater to growing customer demand. Under the agreement, it has been provided with a £500k trade finance facility and funding support from the bank’s commercial finance team to generate working capital. The business also has access to an £8.5m asset-based lending facility, including a stock facility.
“The management team has a wealth of sales and marketing experience in the drinks industry and we’ve identified that with more access to working capital we can better service our customers with a greater range of products,” Stephen Brogan said.
“The team at Lloyds Bank clearly understood the potential to grow the business and how we capitalise on a multi-channel sales approach. They provided the facilities that will play a significant role in accelerating our ambitions, both domestically and in international markets.”
Interbev employs 12 staff at its Ascot Business Park headquarters in Berkshire and outsources its logistics operations to Kuehne & Nagel.
It has grown rapidly since its formation with sales of £56m in its latest financial year (y/e 31 August 2013) and a pre-tax profit of almost £1m. It also featured in the Sunday Times International Track 200 in 2014 as one of the fastest growing exporters in the UK, with overseas revenue contributing almost £34m to the group.
“There is significant demand for constant supply of premium drinks brands across the world, and the challenge for any business trading overseas is funding a much longer working capital cycle,” said Peter Jackson, relationship director at Lloyds Bank Commercial Banking.
“Lloyds Bank’s trade finance facility assists Interbev UK to bridge the gap between shipment and final payment, helping it to compete on the global stage and fuel growth.”
James Ambrose, director of business development at Lloyds Bank Commercial Finance, added: “The asset based lending facility will bridge the payment gap that arises when working with a number of suppliers and distributers, allowing Interbev UK to concentrate on its day-to-day operations knowing that its working capital is being looked after.”
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