Positive Furnish Mercol with Facility
Darwen based office furniture manufacturing firm, Mercol (Office Furniture) Ltd (“Mercol”) has secured a £1.1million funding facility from Manchester based invoice finance specialists, Positive Cashflow Finance (“Positive”).
The business was incorporated in November 1992 by brothers Mervyn and Colin West and is now managed on a daily basis by Colin’s son, Stephen. As well as manufacturing, Mercol also provide bespoke product design and planning for both office space and the education sector.
Stephen contacted Gary Cain at Reach Commercial Finance, who recognised the likely increased cash requirement to increase stock levels and working capital to support their target of increasing turnover to £7 million.
The finance package consists of an £800,000 invoice discounting facility plus an additional £300,000 cash flow loan. Positive were introduced as they have a reputation for offering creativity when structuring funding solutions for businesses. John Chesworth of Harrison Drury advised on the deal.
Stephen West, managing director at Mercol said: “We felt that Positive understood our business and wanted to be part of the exciting plans that we have over the next few years.”
“Myself and the management team are delighted to have secured the funding package that supports our funding requirement”
David Smith, managing director at Positive said: “Mercol has built a fantastic reputation and we are delighted to be involved with this growing business.
“With the funding in place, I am confident they can meet their 20% growth forecast and continue to expand their offering over the coming years.”