Tent specialist secures finance from peer-to-peer lender

SECCO, the Walsall-based company behind the Khyam quick erect tent brand has secured £325,000 investment through the ThinCats peer-to-peer lending Network.

The deal was organised by Birmingham-based Ludgate Finance, a specialist in raising alternative finance.

Secco, based at Vigo Place in Aldridge, offers a wide-range of products for the outdoor industry including the Flexidome and Ridgidome quick erect tents and campervan and motorhome awnings which it sells online, at its store in Somerset and through retailers.

The company’s largest market includes the sale of its Khyam brand tents and awnings – a name synonymous with quick erect tents. The brand was introduced to the market 25 years ago and has since expanded into the family camping and motorhome market with more than 30 models available.

Secco will use the cash injection to increase Khyam stock in the run-up to the outdoor camping season and to also support the development and launch of a new caravan awning range.

Nicholas Roberts, financial director at Secco, said: “Unprecedented demand last year saw popular Khyam stock lines sell out way before the end of the season.

“Allowing for manufacturing lead times and delivery, it was necessary for Secco to re-order swiftly.

“Sales usually start to increase from March onwards and peak in July and August – because Khyam is our biggest selling brand it is essential that we keep stock fluid.

“The £325,000 has allowed us to get ahead of the game providing additional working capital which has enabled us to increase stock levels across the whole brand.

“We are also looking to bring a range of Khyam caravan awning products to the market later this year so the funding has supported with the development and stocking of that.”

David Grocott, of Ludgate Finance, said peer-to-peer lending networks such as Tamworth-based ThinCats are a well-suited alternative for businesses seeking investment.

“In this case, Secco needed to raise finance in quite a short period of time to have the ability to increase its stock and prepare for what is usually its busiest trading period,” he said.

“It is particularly important for seasonal businesses to have that initial injection of working capital to be able to take advantage of an increase in demand but traditional lending isn’t always viable.”

Secco was formed in April 2014 following the merger of Khyam and Somerset Camping.