Posted on April - 23 - 2010
Positive Cashflow is thinking big
Fast-growing Manchester-based lender Positive Cashflow Finance is on the acquisition trail as it enjoys strong growth amid the bank lending squeeze.
Positive, based in Liverpool Road, Castlefield, has seen its loan book increase to £13.5m, up from just over £10m at the end of its financial year in November.
The firm, which provides invoice discounting and factoring finance to small firms, completed seven deals in March alone.
These included a £750,000 working capital facility for Cheshire-based internet marketing company Just Search and funding for the buyout of a Greater Manchester powder coatings business which had been in administration.
Others included support for a management buyout of a vending machine supplies business, and acquisitions by a furniture manufacturer and a plastics manufacturer.
Positive was set up in December 2007 by David Smith, Peter Davis, Phil Chesham and Simon Cook with backing from private equity firm Infinity.
Over 90 per cent of its lending is to north west businesses, with the largest single deal a £1.35m invoice discounting package for a toys importer.
Positive provides funding for buyouts, acquisitions, working capital and restructuring for companies with annual turnover of between £100,000 and £8m in sectors including manufacturing, chemicals, engineering, IT, food processing, transport, recruitment and printing.
Mr Smith said: “We are delighted with the progress we are making. We have a very strong platform for further growth, with significant, undrawn credit lines.
“We also have backing from Infinity and are planning acquisitions in our sector.
“We have a highly experienced team, and if we have an opportunity to bolt on a business we will do so.”
Positive is now 20-strong after the arrival of James Narraway from Grant Thornton and Dan Harding from Davenham Group as regional managers.
Mr Smith said: “There is still a big issue about banks not lending and that creates opportunities for us. Companies can speak to the decision makers, and we can make quick decisions to ensure deals are completed swiftly.”
He added that Positive has recently begun to see companies coming back for further funding as they return to growth following the recession.
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