International Plywood (IP) has signed a finance deal with Lloyds TSB Corporate Markets which it says will help the company increase turnover to £100m within two years.
Gloucester-based IP, which is billed as one of the biggest plywood and panel products importers worldwide, has secured a total of £37m from the bank. This comprises trade finance, asset-based lending and working capital provision and forms part of a deal to bring all the company’s banking to Lloyds.
“Previously we worked with two banks but neither seemed to have the appetite for developing the business that we had, so we had to rethink and change,” said IP managing director Ian Attwood. “The arrangement with Lloyds will allow us to take up any opportunities that arise, including in acquisitions, increase our standard range, and expand our panels supplies business in Europe. Essentially it frees us up to trade.”
Lloyds described the finance arrangement as a “bespoke package” developed in association with IP by its relationship and corporate markets teams.
“By gaining a detailed understanding of its trade flows we were able to tailor a combined trade finance and asset based lending solution that addresses its working capital requirements and will grow with the business,” said Simon Robinson, Lloyds commercial finance business development director.
Mr Attwood said that the deal may be evidence of banks starting to loosen their “hands on businesses throats” and free up more credit.
“It shows that if you’ve got a good track record and can demonstrate you have a sound business, the money is there,” he said. “Basically you’ve got to sell yourself to your bank.”
He said that IP had “maintained its position as leaders in a very competitive market” and was cautiously upbeat about the state of trade.
“You can’t forecast too far ahead, but, whereas last year you could be optimistic for the month ahead, it’s now probably two.”
