British Tempest Fashion made successful use of alternative finance
The future seems to look positive for British manufacturing in 2014, with confidence in growth, inevitably, some of these small business will need financial support, including working capital. Increasingly they may find short term cash flow solutions with alternative, rather than traditional lenders
One company, taking up such an opportunity is Tempest Fashion, launched in 2012 by Dan O’Connor and Gareth Thomas taking the fashion industry by storm. The company had significant opportunities for growth in 2013. Despite increasing demand for their online fashion range and winning new contacts with major brands, they found themselves with a short time cash flow issue threatening to halt their progress. With traditional funding unavailable, Tempest turned to Creative Capital and found that selective invoice finance was the ideal solution for the business.
Dan O’Connor commented “unfortunately our bank couldn’t offer the financial support we needed to strengthen the cash flow. We turned to our accountant who introduced us to Creative Capital. Selective Invoice Finance proved to be the ideal solution for us, the speed with which we receive cash and the flexibility of being able to obtain advances on the invoices we select, without a tie involved, is exactly what we needed.”
Tempest Fashion created eighteen jobs in 2013 alone, relocated to a new factory and launched new product lines.
Selected Invoice Finance is still a relative newcomer in Britain, and there is a tendency assuming that such services are the same as factoring, but there are some significant differences, explains Sue Moore, Director of Creative Capital, and adds: “these differences are key for small business owners. We provide cash advances against single or multiple invoices, allowing Tempest Fashion to remain in control and use our services as and when needed. There are no long term tie-ins. We are one of wide range of alternative finance providers filling the gap left by traditional funding.