Manufacturer plans growth with new financing

AN ALDRIDGE manufacturer has secured a £2.5m funding agreement with Santander Corporate Banking to support its working capital position.

McKechnie Brass, which was recently bought by Nick Harrison and Peter Brown securing the future for 45 workers, has arranged an Invoice Finance facility with the bank. The move will secure the business and allow it to press ahead with an expansion programme.

In addition to the lending facility, Santander will also provide an invoice discount service, which will enable McKechnie Brass to receive prompt payments for its goods, improving its cashflow position.

This new relationship was managed by the bank’s corporate banking team in Birmingham, who will provide ongoing support.
 
McKechnie Brass is the last brass extrusion manufacturing company in the country, using scrap brass sourced in the UK. The company produces brass rods and profiles for a range of products such as, pins for plugs, door locks/padlocks, lift tracks and overhead conductive wire for the railway industry.

Mr Harrison and Mr Brown purchased the former Bolton Brass business in March, renaming it McKechnie Brass – its original name from 1871, when the McKechnie brothers founded the company. Since the acquisition, orders have increased by nearly 400% and the business has had to recruit 15 additional employees to support the increased demand.
Mr Brown, who is managing director of the business, said: “We are delighted with the facilities we have arranged with Santander.

“McKechnie Brass has a unique product in the UK and this agreement is important for our future success. Our previous bank were not even willing to discuss our needs but Santander’s West Midlands team took the time to fully understand our businesses needs and then were able to make a quick decision together with very competitive terms and we look forward to developing our relationship with the bank further.”

He said the agreement was vital for the growth of the business as it would considerably improve the cashflow situation.

“Cashflow is the lifeblood of any business and is key for our plans for future growth and therefore the Invoice Discounting service we have secured will prove invaluable,” he added.

Pete Drummond, Business Development Manager at Santander Invoice Finance in Birmingham said: “McKechnie Brass has a great history in the region and a strong plan for future growth, allied to a highly-qualified management team in Nick Harrison and Peter Brown, who have many years experience in the manufacturing sector. I am pleased that we have been able to provide the support they need.”

He said the bank was keen to continue supporting strong, viable companies such as McKechnie Brass and the strategy had seen it significantly increase its corporate clients in the region.

Pictured at the Aldrige factory are, from left: Nick Harrison, Peter Drummond and Peter Brown.