The management team, led by David Tilling, Neal Errington and Darren Cottenden have successfully completed a management buyout of Factor 21, a leading independent invoice finance facility provider serving the SME market
The team secured a £9 million investment from Mobeus Equity Partners and a new £50 million debt financing facility from RBSIF to complete the transaction and provide additional funding to back its exciting growth plans.
Mobeus, a buyout firm with extensive experience in the invoice finance sector, sees a significant opportunity to capitalise on strong demand from SME’s for finance from the alternative lending market and anticipates providing further funding to underpin the company’s plans to expand from its two existing regional offices to a nationwide footprint and expand its product portfolio.
Since its establishment more than 15 years ago, Factor 21 has funded over £2bn of invoices for its clients. Today the firm provides flexible finance and accounts receivable solutions to more than 400 SME clients with annual sales of between £0.5m and £6m.
Over the past 3 years Factor 21, based in the Thames Valley and Manchester, have outperformed the market and developed a reputation as a leading independent finance provider, by delivering fair and flexible financing solutions with an unrivalled customer service ethos.
The company is led by a team of highly experienced industry professionals with a combined 80 years in the industry and will be supported by a new Board of non-executive directors including David Robertson who joins a Chairman and Jonathan Gregory who joins as Director.
David has extensive experience in the industry having been CEO of Bibby Financial Services for 15 years, which grew to the largest independent invoice finance company in the UK. Jonathan was a co-founder and Finance Director of Invoice finance firm IGF, giving him an excellent insight into the industry.
David Tilling of Factor 21 said: “we are delighted to have secured both the investment from Mobeus Equity Partners and an enhanced financing facility from RBIF to support our future growth strategy. As we further develop our business we will continue to focus on the creativity and flexibility inherent in our product, underpinned by a strong customer service proposition. Geographic expansion is extremely important to us, and we will recruit new talent to help grow our client portfolio”.