In another of our Bibby Financial Services case studies we look at Qualitape Ltd which is one of the UK’s leading suppliers of packaging, tapes and adhesives. In partnership with Bibby Financial Services, Qualitape is targeting a 25 per cent increase in turnover in 2014.
Qualitape Ltd was hit during the recession and looked for help with restructuring. Malcolm Rowson, who had been involved with the company on a consultancy basis, recommended Bibby Financial Services as the current provider was unable to increase funding levels. The business moved over to Bibby Financial Services as the flexibility built into its facility meant Qualitape could generate more working capital and ease their cashflow worries.
Owner Gary Speller explains the process of working with Bibby Financial Services; “Something had to be done to ensure the survival of the company. We looked to our funders, but they had a set way of doing things and would not move from their procedure. There was absolutely no flexibility there,” said Gary.
“Bibby Financial Services was more cost-effective than our previous funding provider, but this was not the main reason for moving – it was all about the flexibility that was offered,” explains Malcolm.
In 2009 the business found itself in difficulty when it was faced with three large debts that it could not carry. The re-launch of the business was carried out with the help of Bibby Financial services and a Danish investor. In the past 18 months the fortunes of the business have rapidly improved.
Wide range of customers
Qualitape deals with a wide ranging customer base, including businesses in the food industry, manufacturing and internet sales. The funding provided by Bibby Financial Services has enabled the company to provide more bespoke products to match client needs.
“The funding has enabled us to develop and grow the business. Our short term plan is to purchase a tape cutting machine so that – instead of buying it pre-cut – we can buy the tape in log form and cut it down from big rolls to whatever size our customers want.”
Malcolm concludes: “Our plans for this year are to achieve a sustainable level of growth and we will be taking on one or two more staff. With the flexible funding facility from Bibby Financial Services, we are confident about the future and are not averse to looking at larger scale expansion or taking over other businesses.
“While it is the case that the business has suffered due to economic recessions over the past 15 years, it is now true that the recovery we are seeing is providing a much-welcome boost.”
Contact Bibby Financial Services
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for businesses in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.