HSBC Provides £4.4m Funding To Yorkshire Power Firm
15th Aug 2011
A Yorkshire specialist power supply firm has secured £4.4m of funding to assist with expansion.
Progress Group, which is based in Dewsbury sells, rents and installs generators and emergency power equipment to industrial and commercial clients worldwide. The business was originally founded in 1956 and has grown into the UK’s leading dealer of FG Wilson diesel generating sets, and is looking to further expand its fleet of hire equipment that is proving popular with customers who want to reduce capital expenditure.
Andrew Walls of Ethos Corporate Finance led the deal that involves a total of £4.4m of lending provided by HSBC. The funding package comprises a term loan of £900,000, a £1.5m asset finance facility and an international trade facility of £500,000 all provided by HSBC Bank. A working capital facility of £1.5m was also provided by HSBC Invoice Finance.
Commenting on the deal Andrew said: “Progress needed more liquidity to invest in the newest generator technology available to take advantage of the opportunities in the hire market and move forward after the recession. Increasingly, the right lenders for businesses depend on their sector, markets and trading situation. This deal shows that solid businesses can still attract crucial funding, but you can’t just rely on your existing bank, and you have to be willing to work hard to structure the package and work with new providers.”