Cynergy Business Finance (CBF), the asset-based lending (ABL) arm of Cynergy Bank, has provided a £1.5m invoice discounting facility for family run Wakefield Shirt Group (WSG), to support the clothing manufacturer’s growth plans.
Founded in 1940, during the Second World War, when cotton was in short supply, the Wakefield Shirt Group quickly gained a reputation for innovation as it led the adoption of synthetic and mixed fibre clothing. Through a series of successful acquisitions, the group today is formed of four companies: The Wakefield Shirt Company Ltd, Double two Ltd, Wm. Sugdens & Sons and Threadneedle Company Image Ltd.
Selling over three million shirts per year, in more than 40 countries, and bolstered by workwear and casual wear businesses, the group saw opportunities for growth. With their existing financiers unable to provide the what WSG wanted, CBF were able to provide comprehensive credit to WSG’s international customers and establish flexible concentration limits. This enabled the creation of a tailored multi-currency facility for WSG which maximises the funds available and offers flexibility. This customised approach has successfully freed up working capital to accelerate progress on WSG’s expansion plans.
John Donner, managing director of the Wakefield Shirt Group, said: “When we needed working capital to expand CBF were able to help. Their process was straightforward, with a flexible and friendly approach throughout. Running the facility has been notably easy in comparison to alternative providers. Effective communication between CBF and our team ensured that any minor difficulties were rapidly ironed out. We have certainly never felt we are just an account number with Cynergy Business Finance.”
Dan Burton, executive director, Cynergy Business Finance, added: “WSG have a tremendous heritage, and the staff at all four businesses in the group are clearly passionate about the products that they produce. It has been an absolute pleasure to be able to credit them with the real value of what they are creating, to equip John and his team with the financial support for the next chapter in the story of this outstanding business.”