The €300,000 facility, from Growth Lending, will provide Newport Farmer with the working capital to expand into new suppliers as well as diversify its customer base.
Founded in 2019, Newport Farmer facilitates the import and export of produce such as bananas, limes, plantain and mangoes through an integrated supply chain network.
The business works with a selection of producers from the Dominican Republic, Mexico, Costa Rica and Columbia, ensuring that clients across Europe receive the best quality produce.
The facility from Growth Lending will enable the business to continue to improve the efficiency and reliability of goods, service and cost to clients.
In addition, it will ensure Newport can continue its mission of representing farmers and producers by working directly with distributors at the end of the supply chain, giving them the best chance of a good price in a highly competitive market.
The business has chosen to work with Growth Lending as it was able to offer a standalone EUR facility, with no conditional requirement to fund GBP alongside it. The flexibility of the selective invoice finance facility enabled Newport to fund one large debtor freeing up cash flow to assist with growth plans.
In addition, Newport can select which invoices it would like to fund against, meaning the cost of the facility can be controlled.
Growth Lending provides funding for growth, working capital and M&A. Founded in 2013 to support UK SMEs where traditional banks cannot, the firm works with innovative and fast growth B2B businesses, including those in technology, media and healthcare. Growth Lending had a record 2021, providing £64m under the government CBILS initiative, supporting businesses through the pandemic and aims to double in size by the end of 2022.
Filipe Silva, Managing Director at Newport Farmer, said: “Growth Lending has made the process of securing new finance very easy, taking the time to understand my business model and work with me to complete all the required administration for a successful application.
“In current circumstances, ensuring that we can manage costs to clients, provide produce at a good price and continue to support producers is more important than ever. Growth Lending were able to offer me a flexible finance solution that enables me to do this, works well for my business and means I can take on new leads without cash flow limitations.”
Vicki Taylor, Principal at Growth Lending said: “In the current environment it can be difficult to navigate the various funding options available to businesses, particularly when dealing in currencies other than GBP. On the advice of Jim Davis at Clear Cashflow Solutions, Newport approached me with a request for a standalone EUR FX facility.
“The business has seen impressive growth since it began and the funding we’ve provided will enable it to continue on this trajectory, it’s a pleasure to be able to support it.”