Funding specialist Centric Commerical Finance has provided loudspeaker manufacturer Martin Audio with a £1.3 million invoice discounting facility.
This additional working capital will be used to ensure the on-going growth of the business as Martin Audio develops its hugely auspicious MLA (Multi-cellular Loudspeaker Array) systems.
Martin Audio is one of 10 companies under the umbrella of US-based Loud Technologies Inc. Loud is itself a user of invoice discounting and ‘asset-based lending’, and encouraged the management team to seek out this form of funding. In short, the deal gives Martin Audio swift access to capital for manufacturing and production materials, at workable bank lending rates.
The arrangement is one of a number of deals completed by Centric with private equity houses in the first quarter of 2012 – a trend that looks set to continue in the rest of the year, says the company.
Anthony Taylor, managing director of Martin Audio, says it’s an excellent short-term solution for the company. “Centric’s facility is allowing us to develop new technologies and widen our product offering.”
Currently celebrating its 40th anniversary, Martin Audio is experiencing a period of unprecedented financial success, driven by sales of the MLA technology. At Prolight + Sound, Taylor revealed new MLA orders worth nearly £2 million. The picture, above, shows rental house RG Jones’ MLA Compact system in action on the recent Chris Rea UK tour.
Centric founding director Andrew Rutherford tells PSNEurope: “The amount Martin Audio can borrow is structured so that it can grow in line with growth in business.
“We’re very proud to support this UK-based company,” he adds.
With a portfolio of over 250 clients, Centric is a champion of fund arrangement for SMEs (small and medium enterprises) in the UK. The company has won several accolades since it was formed five years ago, including Asset Based Lender of the Year at the South East Dealmakers Awards 2011 and Asset Based Lender of the Year at the Central & East of England Dealmakers Awards 2011.