Premier Invoice and Asset Based Lender Venture Finance has provided Sheffield based coil spring manufacturer, TSL Turton, with a Domestic and Export Factoring facility worth £1.1m to facilitate a management-buy-out (MBO). The package comes with the Government’s Enterprise Finance Guarantee (EFG) and this will deliver the cashflow boost needed to stabilise the company during these unpredictable times.

TSL Turton has been manufacturing spring coils since 1879 and is one of just two companies that can provide sizable hot-coiled springs to the UK market. The business services a wide range of sectors including automotive, rail and aerospace, and boasts an established reputation across both the UK and the European markets. It has been operated by its present management team, which includes Chief Executive Andrew Eyre, since 2002. During this time the company substantially grew, and now employs over 80 highly skilled staff across two production sites in Sheffield and West Bromwich.

Having initially been funded by a traditional high street bank through an overdraft facility, TSL Turton required funding to complete the MBO.

TSL Turton needed a funding package that would ensure a healthy cashflow, crucial in enabling the necessary increase in production and the completion of the MBO, and a financier with sufficient Export Finance experience. Venture was introduced through credit management specialist P&A Receivables and it quickly introduced a Domestic and Export Factoring facility.

Venture’s experience in Export Factoring meant that it could provide the support needed when dealing with international languages, time zones and currencies flexibility – all potential barriers to the successful expansion into other European markets.

Andrew comments: “Venture were there when we needed support and guidance in what are difficult and unpredictable times. They have quickly become a trusted and respected partner that will allow us to develop the business going forward. The business of TSL Turton has over 130 years of experience and is built on firm foundations, ideally placed to take maximum benefit from the opportunities in the future.”

Venture’s Export Factoring enables businesses to receive up to 90% of the value of export invoices as soon as they are raised, easing cashflow worries and allowing growth objectives to be pursued in confidence. It also takes away the stress of having to chase customers for payment in different languages and under different business laws, dealing with different payment cultures and stalling techniques.

With Venture as one of only 26 lenders of the scheme, the EFG was introduced in January and improves upon the Small Firms Loan Guarantee (SFLG) scheme. This Government-backed business loan is designed to help established, viable companies secure additional funding or working capital and through Venture, businesses can raise anything from £25,000 to £1 million with the EFG.

Daniel Summerfield, Venture Finance Regional Director comments: “It is pleasing to assist such an established company that also displays a strong business plan. Given our Export Finance experience, we were able to act quickly to deliver the funding to ensure the MBO was completed as quickly and smoothly as possible. I know Andrew and the management team have a lot of exciting plans for TSL Turton.”