Secure Trust Bank Commercial Finance has provided a £2m invoice finance facility to Avon Steel.
The South West steel provider stocks over 1,500 tonnes of steel from its head office in Bath and second depot in Plymouth.
Avon Steel is now associated with Breal Capital's £135m revenue steel group, which is looking to acquire other stockists and distributors of steel.
The £2m invoice finance facility will support Breal Capital with these acquisitions as well as provide general working capital for cash flow requirements.
Simon Parson, managing director at Avon Steel (pictured above), said that following the acquisition of the business by Breal Capital in late November, it was aware that it would need a finance facility to support its future growth.
“We chose to work with Secure Trust Bank Commercial Finance because of its refreshing approach to lending.
“The team took the time to understand the business and its requirements and constructed a facility in a short timeframe.
“We're now able to set our eyes on future targets and embark on the next phase of our acquisition strategy.”
David Parsons, director at Secure Trust Bank Commercial Finance, added: “Avon Steel is in a good position to take advantage of the steel industry's resurgence in the coming years, with more companies likely to seek local steel over expensive imports.
“Having worked with Simon and the team, it was clear that the flexibility we were able to offer was of great value to the business, enabling it to restructure its balance sheet and gear up for future growth.”
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