funding your business 35


Asset-based lending perfectly pitched as signs of buoyant market build


At last the real signs of economic recovery are evident in the UK market. Inflation and unemployment are both down; GDP growth is variable but positive. These overall healthy economic indicators create the ideal platform for UK plc to move forward with confidence, writes Jonathan Hughes, regional sales director. Leumi ABL


We also continue to hear reports of the Bank of England’s intention to maintain low interest rates, and this should further build confidence for the business environment. This has led to a noticeable shift in the appetite for investing in business growth.


The Leumi ABL team is seeing much evidence of this in our mid-tier market with increased M&A activity, particularly in the private equity market. With increasing levels of activity there are more PE firms raising new funds to invest in the ever more confident and buoyant market.


This is great news and will undoubtedly Client case study


Leumi ABL completes £8.5m multi-asset finance deal with Cooper Callas


Cooper Callas, the Oxfordshire-based importer of bathrooms and bathroom furniture (shower enclosures, taps, sinks, showers) has been supported by Leumi ABL with an £8.5 million asset-based lending facility.


The deal was introduced to Leumi ABL by HMT Corporate Finance which was advising a management buyin team, led by Philip Carr, now managing director at Cooper Callas.


The ABL facility includes invoice discounting, stock, loan and trade finance. The funding replaces the client’s previous invoice discounting facility and will help improve working capital as well as support the acquisition. The size and structure of the Leumi ABL line will allow for ample growth.


Andrew Thomson, partner at HMT THE BUSINESS MAGAZINE – THAMES VALLEY – FEBRUARY 2015


feed further growth, as we have seen ourselves in a number of recent deals – including Leumi ABL’s financing deals with leading UK visual merchandise manufacturer, Proportion London; and importer of bathrooms and bathroom furniture, Cooper Callas.


We recognise the ever more challenging needs of our clients and the Leumi ABL offering continues to evolve while retaining the same personal and flexible approach in managing all of our client relationships.


For example, we have extended our term loan product from 24 months to 36 months. This provides even greater


flexibility to clients as part of our overall ABL package of facilities.


In addition


we are pleased to introduce a new trade finance product, building on the excellent reputation enjoyed by Bank Leumi (UK) plc in this field.


As always, we are keen to work closely with professional introducers, building new and existing relationships, and we look forward to discussing any new opportunities.


Corporate Finance, commented: “We ran a competitive tendering process for the funding and received a number of offers which we shortlisted to three. Leumi ABL stood out as the most flexible and competitive and having worked with them a number of times before, we were confident in their ability to deliver on the terms offered. Leumi invested a lot of time getting to understand the requirements of the business and provided both CID and a revolving stock finance so that amortisation could be minimised.”


Philip Carr, managing director at Cooper Callas, commented: “The Leumi team invested significant time at regional and board level to fully engage with our vision for Cooper Callas. Through continuous dialogue and a real commitment to getting the deal done, Jonathan Hughes and Phil Woodward were without doubt our preferred provider.”


Leumi won the deal because, although competition was intense, it stood out by putting together the best overall package. The Leumi stock finance facility revolves which


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suits the clients’ specific requirements, whereas others wanted term debt that amortises too quickly and doesn’t offer the flexibility we could provide. We understand the importance of building strong relationships from the beginning – we met Philip Carr several times, and Phil Woodward, managing director at Leumi ABL also came to meet him which demonstrated director level buyin. The strength of our offer was supported by a swift credit process which helped to close the deal.


Advisers to the deal for Leumi ABL were Shoosmiths and Edward Symmons.


Details: Jonathan Hughes jhughes@leumiabl.co.uk 07584-630762 www.leumiabl.co.uk


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