As the enterprise behind the Harrogate Spring Water brand, which became one of the UK's top 10 bottled waters within a decade of launching, The Water Brands Group were looking for a bank that could appreciate their drive.
"We needed a banking partner that really understood our business and was willing to support our growth ambitions," comments James Cain, the firm's Managing Director. Cain admits that the group were initially apprehensive about transferring their account, following a decade of banking with their previous financial provider. Nevertheless, the group scheduled a meeting with Aldermore to discuss the prospect of putting their capital to better use.
"They immediately got it," enthuses Cain, elaborating, "They understood our working capital needs and were able to develop a proposal tailored to our specific requirements. I was extremely impressed with the high calibre of Aldermore's staff, their ability to quickly assimilate key information about our business and understand what we wanted to achieve."
Cain immediately made the decision to open a business account with Aldermore, and after an initial transfer period which he describes as "Both quick and efficient," James was ready to consider the SME's financial options.
The group opted to take out an invoice finance agreement to free up vital capital for investing in a new bottling line and on-site warehouse facilities in order to expand the brand's operations. This form of credit agreement allows a business to access the capital tied up in the unpaid invoices from its customers, advancing up to 80 per cent of their total value.
While each agreement is uniquely tailored to the individual needs of a business, invoice finance agreements typically fall under two categories; factoring and invoice discounting. This gives an SME the choice of whether to charge Aldermore with the debt recovery process, or whether to take out an agreement in confidence, without involving the debtors, maintaining control of the sales ledger.
With either option, invoice financing generates improved liquidity for businesses like The Water Brands Group, creating an opportunity to cover uncertain cash-flows or invest in further development.
Reflecting on Aldermore's pride in being able to assist promising British SMEs in this way, Nick Smith, Aldermore's Regional Managing Director for Yorkshire, comments;
"The Water Brands Group is an excellent example of a great British business that has been able to grow and prosper in recessionary times. This is exactly the sort of business that Aldermore is eager to support."
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