PEC Packaging Ltd has utilised a £2.5 million invoice discounting funding line from Skipton Business Finance following a drop in demand in the automotive industry caused by COVID-19.
PEC Packaging Ltd
As was the case for many UK manufacturers, the effects of the pandemic led to a downturn in demand which was quickly followed by liquidity issues due to unpaid customer invoices. To support cashflow management and resolve short-term liquidity concerns, PEC turned to Skipton Business Finance, who were able to provide the business with a funding line of £2.5 million.
Tiernán Rice, Finance Director at PEC Packaging said: “The invoice discounting support provided by Skipton Business Finance has truly transformed our business. “As our core customers operate in the automotive industry, COVID-19 caused many financial headaches for us due to a lack of demand for products and it soon became apparent that well-managed finance support was needed to help the business through challenging times. As the market began to recover, we were able to use the working capital provided to support plans to scale up significantly, taking on additional staff to service our ever-growing customer base."
He adds, “We have also been able to move to a larger site at Brunswick Dock, Liverpool which provides us with the extra production capacity required to support our plans for growth.”
Peter Heyes, Senior Relationship Manager at Skipton Business Finance says: “We’re delighted to have been able to provide PEC Packaging with suitable finance to help the business recover from the issues which the pandemic has caused for so many reputable manufacturers. We work across a diverse range of businesses across a variety of sectors, but being able to monitor and mitigate the financial risk for PEC Packaging and seeing how it has helped the business grow over such a long period gives us a real sense of true customer satisfaction."