A Staffordshire-based supplier to the engineering, construction and pipeline water industries, is set for a bright future after leveraging the support of Invoice Finance to improve its cashflow.
Formed in 1981, Vulcan Industrial Fasteners, is a respected provider of fasteners, fixings, tooling and welding products, abrasives, rollers and protective clothing, with a particular focus on the main line water industry. Today, the business is cash-rich, no longer requiring external financing.
But things were not always as rosy for the supplier, which encountered severe financial difficulties a decade ago, with accountants and financiers leaving the business in the lurch. In 2004, following a financially challenging time, the future of the business looked uncertain as it searched for new funding to get back on track.
It was at this point, Vulcan turned to Bibby Financial Services (BFS) and with a new funding partner in place, the business worked through the financial crisis of 2008 to win important contracts.
Today, the business stocks more than 4,000 different products and its turnover has increased from £3.5 million, just a year ago, to £6 million.
When Vulcan saw a good opportunity to import containers from abroad, Bibby Financial Services helped the firm make this important investment, providing ongoing support via an Invoice Finance facility, which enabled the business to purchase the expensive items.
Steve Fox, Company Director at Vulcan Industrial Fasteners, said: “After our previous financier abandoned us, we needed a trusted partner who could see the big picture, which is when we turned to BFS.
“Our funding was tight and I was getting in at 8 o’clock every morning to draw down cash. But having a funding partner that believed in our business, like BFS, allowed me to concentrate on the day-to-day running of the business.
“The team at BFS were there when we needed them and they have played a vital role in getting us into the fantastic positon we’re in today.”
Edward Winterton, UK CEO at Bibby Financial Services, explains: “Vulcan was one of our Manchester office’s first clients when we opened our doors. We believed in Steve and his business and were able to see potential in their commitment to build a reputation for quality.
“Vulcan is now so successful, it uses cash reserves to fund its future growth. This is a fantastic example of how a business can successfully leverage the benefits of invoice finance to position itself for the future.”
Steve Fox concluded: “We kept money in the business and reduced our debt, which was the long-term aim. This was the right decision and I can sleep well at night knowing I did the right thing by our staff. We couldn’t have done any of this without BFS – I know that for certain.”