By Claire West
A leading health products wholesaler has expanded the exporting arm of its business after securing a £2 million asset based finance facility from Lloyds TSB Commercial Finance.
Established in 1932, Health Stores (Wholesale) Ltd supplies an extensive range of natural, ethical and organic products, including food, body care, dietary and cleaning goods, to independent retailers and wholesale traders across the UK and Europe.
The Nottingham-based business, which has an annual turnover in excess of £20 million and employs more than 90 staff, has expanded rapidly over the past nine months and is now exporting its products internationally after winning several new contracts with firms throughout Asia.
To support the company’s ambitious global growth plans, it switched from its previous banking provider to Lloyds TSB Commercial Finance, which provided the business with a refinancing package. This will supply a cashflow boost and deliver the firm with the financial headroom for it to further develop commercial opportunities in the Far East.
Tim Ryan, managing director at Health Stores, said: “Demand for natural, organic products has increased dramatically in recent years as consumers embrace healthier lifestyles. This has generated significant expansion opportunities for our business, particularly in the high-growth Asian markets.
“When we investigated refinancing options that would provide working capital for the business, the diversity and flexibility of the funding facility supplied by Lloyds TSB Commercial Finance was ideal. The team worked hard to make it a simple transition for us, and the business is now on track to expand its turnover further in what is a competitive sector.”
James Scarborough, director of business development at Lloyds TSB Commercial Finance, said: “Health Stores is committed to providing ethical products and a high-quality service to its customers, and the firm has identified encouraging development opportunities abroad to counteract low domestic growth.
“This finance package will prove invaluable for its export requirements, particularly when dealing with overseas clients who trade on different payment terms to UK companies. The deal illustrates our understanding of the diverse requirements of growing exporters, and the suitability of asset based finance for these firms.”