£2.5m funding line transforms packaging firm following Covid-19 challenges

L-R:Tiernán Rice (PEC), Peter Heyes (SBF), Colin Noble (PEC)

A £2.5m invoice discounting funding deal has enabled a Liverpool firm to overcome a Covid-19 downturn and expand to bigger premises linked to future growth plans.

PEC Packaging specialises in timber packaging products and manufactures one of the largest ranges of packaging products in the UK.

Founded more than 35 years ago, it supplies numerous multinationals, including automotive giants Jaguar Land Rover and Nissan UK and Siemens.

The financial support from Skipton Business Finance has helped it overcome its post-Covid-19 challenges and support the business’s continued growth.

The company experienced a drop in demand from the automotive industry which was caused by the pandemic which led to a downturn in demand that was quickly followed by liquidity issues due to unpaid customer invoices.

To support cashflow management and resolve short term liquidity concerns, PEC turned to Skipton Business Finance, which was able to provide the business with a £2.5m funding line.

Tiernán Rice, Finance Director at PEC Packaging said the support has been transformational.

“As our core customers operate in the automotive industry, Covid-19 caused many financial headaches for us due to a lack of demand for products and it soon became apparent that well-managed finance support was needed to help the business through challenging times.

“As the market began to recover, we were able to use the working capital provided to support plans to scale up significantly, taking on additional staff to service our ever-growing customer base.

“We have also been able to move to a larger site at Brunswick Dock which provides us with the extra production capacity required to support our plans for growth.”

Peter Heyes, Senior Relationship Manager at Skipton Business Finance, said: “We work across a diverse range of businesses across a variety of sectors, but being able to monitor and mitigate the financial risk for PEC Packaging and seeing how it has helped the business grow over such a long period gives us a real sense of true customer satisfaction.

“The invoice finance solution we provided has given the firm all the right tools to move forward and effectively manage its finances independently.”

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