Premier Invoice and Asset Based Lender Venture Finance has provided South Wales rescue and recovery company Dragon Rescue with a £400k Confidential Invoice Discounting (CID) package to help the business expand and effect the acquisition of commercial tyre remoulding company Risca Tyres and expand its operation.

Dragon Rescue is a leading independent breakdown recovery business, providing private and commercial vehicle repair and recovery services across South Wales. Its client list includes the South Wales Police, with which Dragon Rescue retains an exclusive contract for breakdown and rescue recovery.

With an important strategic acquisition planned Dragon Rescue was looking to escape a restrictive funding arrangement in place with a high street bank, and was introduced to Venture by Neil McDonagh of prominent South Wales-based commercial broker HCF Commercial Finance Solutions. Venture wasted no time in getting to grips with the business to fully understand its requirements and plans, and in doing so was able to offer greater funding and flexibility.

The £400k CID package provided by Venture strengthened the daily working capital position and ensured that the planned acquisition of Risca Tyres was able to commence. This strategic move has enhanced Dragon Rescue’s service offering, enabling the production of tyres to fit its customers’ vehicle fleets. The package also includes a bespoke solution to assist in the smooth running of Dragon Rescue’s relationship with South Wales Police.

Colin Newnes, Group Accountant, Dragon Rescue, comments: “Our previous facility didn’t give us enough headroom to make the acquisition. Venture has provided us with the working capital to help us grow our expanding organisation. Our new relationship has allowed us to make our growth plans a reality.

“Industry contacts I have spoken to since switching our facility from a high street bank have praised our decision to move, which just goes to prove how good Venture’s reputation is within the marketplace. The team lived up to their award-winning status and no problem was too big for them to handle.”
Kelvin Thomas, Regional Director, Venture Finance, comments: “Dragon Rescue now has the freedom to confidently consider further acquisitions. The day-to-day running of the business is much easier now the management team has the cashflow boost the invoice finance provides.
“Whilst banks seem to still be reluctant to lend, Venture has a proven record for making things happen for viable businesses with ambition. We took a collaborative approach, came up with the solution and made it work. The result is a funding package which successfully overcomes the availability issues Dragon was facing with its previous lender.”

Neil McDonagh of HCF Commercial Financial Solutions, comments: “I worked with Dragon Rescue for some twelve months and having realised their ambitious plans for growth, they have been a perfect match for Venture’s individually tailored business offering. Venture have always provided a prompt response to the introductions I have given them by getting to understand the needs of each individual business, and thus allowing them to make the quick decisions that are key for cash-funded deals.”