Liverpool packaging firm secures £2.5m in invoice financing to fund the move to a larger premises after being hit by a post-COVID downturn. Tony McDonough reports

Liverpool timber packaging specialist PEC Packaging has secured £2.5m in funding from Skipton Business Finance to relocate to larger premises.

PEC saw a drop in demand in the automotive industry following the COVID-19 pandemic. Directors identified a need to expand to a larger facility at Brunswick Dock close to Liverpool city centre to support its recovery and future growth.

As was the case for many UK manufacturers, the effects of the pandemic led to a downturn in demand which 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, who were able to provide an invoice discounting funding line of £2.5m. Invoice funding is secured on as yet unpaid invoices.

Tiernán Rice, finance director at PEC Packaging said: “The invoice discounting support provided by Skipton Business Finance has truly transformed our business.

“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.

“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, Liverpool which provides us with the extra production capacity required to support our plans for growth.”

PEC Packaging is an industry leader in timber packaging products and manufactures one of the largest ranges of packaging products in the UK. Founded more than 35 years ago, its customers include Jaguar Land Rover, Nissan UK and Siemens.

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Peter Heyes, senior relationship manager at Skipton Business Finance, added: “We work across a diverse range of businesses across a variety of sectors.

“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.”