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Factoring & Invoice Discounting

Telecoms hardware specialist boosted by Invoice Discounting and Small Firms Loan Guarantee

By CreditMan Wednesday, June 4, 2008

Invoice and Asset Based Lender, Venture Finance, has provided Oxford based telecoms hardware specialist UNSL with a funding solution to support a management buy-out (MBO). Venture's package included Confidential Invoice Discounting supplemented by a Small Firms Loan Guarantee (SFLG) which enables the company to bolster its salesforce.

UNSL are distributors of high quality computer networking products and components from leading vendors in the IT industry. Products include server switches, network routers and storage solutions plus fibre optic and optical networking solutions suitable for enterprise and SMB premise networks.

Darren Kiley, UNSL Managing Director, had been using an Invoice Discounting facility from a major high street bank. However, in order to buy-out his business partner and fellow Director he required a funding solution that would provide him with the upfront investment required for the acquisition and ongoing working capital to grow the business. The corporate finance team of accountancy firm Shaw Gibbs introduced Darren to Venture Finance who was able to quickly put a creative solution together. The speed of this service means UNSL now has a platform to grow and recruit new employees.

Darren comments: "I immediately felt that Venture could provide a favourable decision within a short time frame. I'm extremely grateful because Venture's flexibility meant we were provided with the acquisition funding. This is when the bank could not help and was crucial in getting the deal completed. We can now start planning optimistically for the future."

As the first independent financier authorised to offer the SFLG loan, Venture has lent over £20m to it clients through the scheme and has delivered it to more businesses than any other. Venture's experience was invaluable in quickly processing UNSL's loan. This provided the initial financial investment necessary to get the MBO completed and allow the company to grow and meet its targets.

Peter O'Connell, Head of Corporate Finance at Shaw Gibbs Corporate says Venture's financial package will enable UNSL to step up a level and establish itself as a leader in a niche market. He comments: "Venture's ability and tenacity to complete the deal in such a short space of time was imperative for UNSL. Thanks to this commitment, the company now has a firm funding base and I am confident it is well placed to continue its upward trend."

Phil McCleod, Business Development Manager at Venture Finance says: "This deal drew heavily on Venture's ability to deliver where other financiers could not. I know this facility will allow the company to grow and become successful, in what is expected to be an interesting year economically."