A packaging manufacturer is set to ramp up production and nearly double its turnover with the support of a seven-figure finance facility.
BM Packaging (BM) produces corrugated cardboard boxes and cartons, selling millions each year to businesses across the UK and throughout Europe via its network of trade partners. A key local employer, its 48 staff operate from its site in Netherton, Huddersfield.
Demand for BM’s products has been steadily increasing over the past four years, and has recently been spurred on by the ongoing ecommerce boom, which has seen the business significantly grow its order book and take on new customers. Last year, BM expanded its physical footprint by a third, taking on an extra 27,000 sq ft facility to expand production.
The team needed to free up additional capital to support investment in further expansion. The company is now supported by a seven-figure invoice finance facility from Lloyds Bank allowing BM to almost double its turnover this year with forecast growth from £8million to £15million. It is also enabling them to invest in new machinery and further strengthen its cash position.
Invoice finance helps bolster firms’ liquidity by allowing them to access up to 90 per cent of the value of unpaid invoices, often within 24 hours. It can play a critical role in ensuring businesses have the cashflow available to support continuous investment, without having to put plans on hold while waiting for payment.
Chris Latham, managing director at BM Packaging, said: “Demand for packaging and shipping cartons has never been higher, as the pandemic pushed online retail sales to record levels. With this new facility, we now have the capacity to increase our production levels and ensure we are best placed to support our trade customers as the market continues to expand.
“Looking ahead, with Lloyds’ support, we are on track to continue to grow organically and sustainably, helping to create more local jobs and boost the regional economy.”
Chris Parker, broker development manager at Lloyds Bank, said: “BM Packaging is a leading example of a local business that has been able to capitalise on growing global demand for its products, playing a key role in keeping supply chains moving by ensuring its trade customers have ready access to high-quality products.
“The business’ track record speaks for itself, and we’re excited to witness the team’s continued growth in the coming year.”