A West Yorkshire manufacturer, Sellers Textile Engineers, finalised a million-pound funding package with Virgin Money and UK Export Finance to enhance its production capabilities and grow its customer base.
Based in Huddersfield, Sellers Textile Engineers is a leading designer and manufacturer of finishing equipment for the carpet industry. The company, established in 1912, specialises in the build and installation of a wide range of textile machinery including backing, coating, and shearing lines, for carpet manufacturers across the globe.
Facing challenges from rising supply chain costs and overheads, Sellers Textile Engineers reached out to Virgin Money who provided access to key specialists that could support their growth strategy.
Working alongside the bank’s Trade Finance Team, the company completed a £1 million finance deal that has enabled Sellers Textile Engineers to enhance its production capabilities and take on larger orders. The company has also created new job opportunities, with at least five new roles including design engineers, fitters and new apprentice opportunities across the business.
Virgin Money’s Business Development and Trade Finance teams worked closely with UK Export Finance (UKEF) to get the deal finalised. The funding package includes a UKEF General Export Facility (GEF) loan guarantee which covered 80% of the financing, enabling Virgin Money to complete the transaction. The GEF product is a flexible government-supported scheme that helps UK export businesses to access working capital facilities, helping to improve cashflow or speed up international trade growth.
Virgin Money’s Trade Finance team also provided guidance to Sellers Textile Engineers on bank guarantees and export letters of credit, which helps to reassure that when the company manufactures goods for export, they will receive payment on time and in full.
Ken Gardiner, financial director at Sellers Textile Engineers, said: “The machines we sell can take several months to build and cost hundreds of thousands of pounds to complete, so as costs increased our cashflow restrictions meant we were only able to take on one order at a time. Thanks to the support from Virgin Money and UKEF however, we now have more flexibility in our finances than ever before, meaning we’ve been able to increase our customer base, reach more companies overseas and take on multiple orders at once. This finance deal is game-changing for us, and we’re excited to set our growth plans in motion and see what the future brings for our business.”
Craig Wilson, head of FX sales & trade finance at Virgin Money said: “Sellers Textile Engineers is a great example of how a manufacturing business can continue to succeed, invest and grow despite tough economic conditions. At Virgin Money we look forward to working closely with the company as they ramp up their international sales by not only providing this initial finance deal, but ensuring we continue to offer great solutions around international payments, foreign exchange risk management and wider trade finance tools to ensure prompt risk-free payments from customers.”
Alissia Deane, export finance manager for West Yorkshire, added: “UKEF exists to help businesses nationwide win and deliver export contracts, offering free and impartial support through its regional Export Finance Managers. Our General Export Facility guarantee allowed Sellers to access suitable trade finance – something which will help this small business to achieve its big ambitions for international growth.”
