Seneca Trade Partners are assisting a North East-based manufacturer of wood flooring who required working capital funding to purchase unfinished stock to meet increased customer demand for their products.
Forest Creations manufacture wood flooring in a variety of styles and finishes, with particular prominence in commercial retail and high-end domestic apartments.
Funding for unfinished stock is difficult for many lenders as the stock being purchased typically undergoes a production process and therefore assessing rights of ownership to finished goods stock is difficult.
In this case, Seneca was confident in the management team and saw the potential for growth in the level of orders and sales enquiries. The raw material stock also moves through the factory quickly and all production is done to order.
Tom Flanagan, MD of Forest Creations said: “The flexibility provided by the stock purchase facility from Seneca means we can be confident in accepting increased orders from our customers, as we know we will be able to purchase the stock we need to deliver our finished products to our customers on time.”
Mark McGuire, Director of Seneca Trade Partners said: “The opportunity to support growth is what our business is all about, clients are often constrained by suppliers requiring proforma payments for goods and orders are then often lost through not having the ability to pay. Forest was a classic example of this and we are really pleased with the growth shown by the business since our facility was put in place.“