Aldermore Bank has completed its first transaction under the government-backed Growth Guarantee Scheme (GGS), supporting the management buy-in of JPH Steelworks with a tailored funding package that goes beyond traditional lending.
The £1.5 million acquisition of JPH Steelworks was completed with local entrepreneurs investing £500,000 of their own capital and Aldermore providing a flexible financing solution to bridge the balance.
Aldermore provided a tailored structured solution comprising a £250,000 invoice discounting facility alongside a £750,000 loan under the GGS, enabling the buyers to finalise the purchase and position the business for growth.
With a plan to double turnover within five years and prepare the business for an eventual sale, the buyers needed a lender able to combine agility with strategic support. Aldermore’s specialist lending approach filled gaps left by conventional funding models and delivered the combination of working capital and longer-term lending required to execute the acquisition and back future expansion.
Chris Meldrum, Head of Business Development at Aldermore, said: “This first transaction under the Growth Guarantee Scheme demonstrates Aldermore’s ability to design flexible finance for businesses with clear growth plans. We created a structure that supports our client’s growth ambitions by combining invoice discounting with a GGS-backed loan. We look forward to supporting them as the business scales.”
A representative of JPH Steelworks said: “This was our first experience working with Aldermore Bank, and it was a pleasure collaborating with the team, especially Nick, Ben and Chris, whose support and perseverance were instrumental in getting this over the line.”
The deal was introduced by Alan Marston, Broker, at Commercial Sense, who had recently connected with the Aldermore team. Alan’s involvement and understanding of both parties helped drive the deal forward and ensured the process was smooth.
Alan Marston, Broker at Commercial Sense, said: “Aldermore were the natural partner for this deal with a well structured funding proposal. Their determination and pragmatic approach meant the deal was completed with the borrower’s growth plans front of mind. It’s been a pleasure working with the Aldermore team and I appreciate their support in getting the deal over the line.”
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