The funding provided by Lloyds TSB Commercial Finance has supplied OBAS with the environment to flourish over the last three months, which has strengthened our business.
Longridge, United Kingdom (PRWEB UK) 17 October 2012
A Preston-based business which specialises in supplying products to the construction industry plans to expand its range and open new premises after securing a six-figure funding facility from Lloyds TSB Commercial Finance.
OBAS UK, located on Chapel Hill in Longridge, offers a range of tools, materials and personalised workwear to a customer base exceeding 26,000 building, plumbing and decorating clients across the UK.
In January 2008, OBAS UK was formed by Norman Tenray through saving four companies which went into receivership as a result of the challenging economic climate and its impact on the construction sector.
Norman transformed the business by amalgamating the smaller companies within the group, applying his previous experience in IT systems and service delivery. Having originally secured 30 jobs, the past three years under Norman’s leadership have seen the company improve its balance sheet and increase headcount to 45.
Earlier this year, the business approached Lloyds TSB Commercial Finance to support its ongoing expansion strategy, securing a £615,000 invoice finance facility.
By advancing up to 85 per cent of the value of the firm’s invoices and, in turn, improving the business’ cashflow, the funding has catalysed the growth of the company over the last three months, increasing its profits during this period and easing pressure on daily management tasks.
OBAS UK now plans to expand its product range, as well as open a new trade centre and manufacturing facility in Longridge at its Chapel Hill headquarters. These initiatives will drive further continuity and stability which will lead to increased turnover, profitability and recruitment.
Norman Tenray, managing director at OBAS UK, said: “The funding provided by Lloyds TSB Commercial Finance has supplied OBAS with the environment to flourish over the last three months, which has strengthened our business. We struggled to secure support from some other major high street lenders with many of them not even bothering to return our phone calls, despite our achievements and high profile within the region.
“I was particularly impressed with the forward thinking, commercially orientated approach from the Lloyds TSB Commercial Finance, representing the attitude from funders which will help drive economic growth in the UK. We are delighted that Lloyds has had the foresight and shown commitment to support our vision.”
Rob Walters, regional manager at Lloyds TSB Commercial Finance, said: “Norman is a driven entrepreneur who has returned OBAS UK to growth in a short space of time; saving jobs and benefiting the local economy.
“Having restructured the business and introduced new stock control measures, the firm’s profit was consistent throughout the last financial year, positioning it to capitalise on improving demand and accelerate its expansion.
“An invoice finance facility was the ideal funding solution for OBAS UK as it frees up cash which would otherwise be tied up in client invoices, for investment in growth opportunities.”
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