Manchester-based menswear start-up Grandeur Clothing has signed a £400,000 funding agreement with Bibby Financial Services (BFS).
It comes after the etailer expanded into wholesale in autumn 2018 and now has plans to widen its offering to womenswear and kidswear.
BFS’ invoice and trade finance package will support Grandeur Clothing’s growth plans by “bridging the cashflow gap between buying from suppliers and receiving payment from customers.”
It will see the financial services firm manage purchase payments with suppliers, while Grandeur Clothing produces the orders.
Commercial director Stuart Rowson said: “As a fast-growing business, Grandeur Clothing found that while our order book was growing, it was increasingly difficult to pay our suppliers in advance and procure the materials required to meet growing demand, which meant we were limited to the number of opportunities we could pursue.”
Sarah Williams, Bibby Financial Services business development manager, north, added: “Trade finance is perfect for businesses like Grandeur Clothing, which imports from overseas.
“The combined (invoice and trade) package will help the business unlock the funds needed to fulfil orders, removing the day-to-day pressure of purchasing from suppliers while improving cashflow and growing sales.”
Grandeur Clothing expects turnover to reach £1.5m in the next year - a 300% increase on its original growth plan.