A Barnsley importer, manufacturer and distributer of composite doors, has secured an £11.5million finance package from Lloyds Bank Commercial Banking.
Distinction Doors Ltd is planning to use the asset-based lending facility to help build stock for the Next Generation Door product range which will be launching in 2017.
The new product range builds on the success of the company’s current core door range by introducing enhanced aesthetics and technical advances that speed up the fabrication process, helping its commercial customers to save time and money.
Lloyds Bank also supported the business earlier this year when it bought a £120,000 CNC milling machine, used to create apertures for hardware and glazing cassettes in the composite doors to a customer specific requirement.
With a turnover of £42million, Distinction Doors is the leading supplier of composite doors in the UK and employs 112 people at its Barnsley site. In 2014, the company featured in the Sunday Times Fast Track 100 list.
The business operates 24 hours a day, five days a week, and ships products across the UK and Ireland. It is looking at international exporting opportunities in the near future.
Vickie Brown, finance director at Distinction Doors, said: “Since we formed in 2004, Distinction Doors has been going from strength to strength, now holding more than half of the composite door market share in the UK.
“We began talks with Lloyds Bank prior to a management buyout in January 2015 and they were happy to support and advise us even while they weren’t our bank.
“They demonstrated a strong understanding of the nature of our business, and how working capital is paramount to manage the lead times we have with customers and suppliers.”
The deal was supported by Andrew Gaunt, director at Lloyds Bank Global Transaction Banking and Lee Bloodworth, relationship director at Lloyds Bank Commercial Banking.
Andrew said: “As well as providing asset finance to help manufacture the new product range, the asset based lending facility will help Distinction Doors continue its rapid growth while keeping on top of cashflow.
“Awareness of asset-based lending, while on the rise, is still relatively low with UK businesses. This form of lending allows businesses that have capital tied up in stock, plant or property to use these assets to access cash.
“We are committed to raising awareness of the full range of working capital options out there including asset based lending and invoice finance; and to helping firms unlock this cash so they can drive faster growth, all while meeting market demands.”
Legal advice on the deal was provided by HLW Keeble Hawson for Distinction Doors and Irwin Mitchell in relation to Lloyds Bank.