London-based distributor flying high on back of drone popularity
The sky’s the Limit for Model Distributor Ripmax Limited
- Business: Ripmax Limited
- Location: Enfield
- Sector: Distribution
- Funding: £4 million
- Turnover: £12 million
Founded in 1949, Ripmax Limited imports radio controlled drones, cars and boats as well as feature film memorabilia from franchises such as Star Wars and X-Men. It then distributes them to leading retailers in the UK, including Amazon.
With recently secured exclusive distribution rights to supply Futaba radio control products across Europe, and growing interest from old and young enthusiasts, Ripmax Limited is set to double its turnover over the next 18 months. To keep up with demand and deliver on its growth ambitions in new markets, this dynamic UK SME sought much needed finance to help with its cashflow.
With imports coming from Japan, China and the Far East, the business has had to manage its cashflow carefully.
Nick explains: “as we have grown our business we have had to become more creative with our cashflow. On the one side, when importing goods, we often find ourselves paying for them before they arrive in the UK. On the other side, when selling our products to retailers, it often takes up to 60 days to receive payment. This leaves a gap in our working capital.”
Working with Bibby Financial Services and Park Capital, Ripmax has secured £4 million funding made up of invoice discounting and trade finance to help close the business’s cashflow gap.
Nick added: “Ripmax has been on a real growth journey in the last couple of years following its acquisition of Amerang in 2013. We have recently secured exclusive European distribution rights for Futaba radio control products which are going to grow the business considerably. This deal will significantly grow our revenues in the European market.”
Talking of the business’s decision to partner with Bibby Financial Services, Nick said: “We’re a growing and ambitious business and we need a reliable funding partner, which is why we chose Bibby.”
“Bibby offers both expertise in structuring working capital solutions and flexibility in relation to the amount of funding we want access to.”
Jamie Gould, Corporate Manager at Bibby Financial Services said: “given the importing and distribution nature of Ripmax’s business, it was essential to provide the right type of funding that would cover their working capital needs.
“There are many ways of doing business around the world and in the case of Ripmax, many of their suppliers require upfront cash before they dispatch their products. This of course is different to the norm in the UK, where businesses often operate on credit terms.
“When encountering these situations, a combination of invoice discounting and trade finance can prove invaluable to a business as it helps to ensure the two flows of cash meet in the middle.”