M2C2 Group Ltd, a distributor of men’s shirts and knitwear, has secured £1m of funding from Independent Growth Finance Ltd (IGF). The funding comes as M2C2 continues to distribute to 500 local independent menswear retailers on high streets across the UK and Europe.
M2C2 needed a funder who understood the seasonal nature of its business and long lead times, which presented the company with financial challenges. For M2C2 a business cycle can be up to 18 months. During this period, M2C2 covers everything from designing prototype examples to agreeing on a sample collection. Then presenting to its sales force, showcasing to buyers six to eight months in advance and, finally, distributing to retailers.
M2C2 therefore sought a finance solution supporting its growth forecast, through the continued supply and development of their customer base of 500 small to medium independent high street retailers. It needed an arrangement that was flexible to meet the unique needs of a clothing distributor. To meet these needs, IGF provided M2C2 with £0.7m invoice discounting and, as part of the wider asset-based lending package, £0.3m of inventory finance.
The human side of a business deal
M2C2 chose IGF out of an original list of 12 different funding providers. IGF offered a balance of professionalism and strong personal relationships that came across in initial meetings.
Neal Dawson, director of M2C2, explains: “We were not only looking for a funder who could provide additional cash to support our growth aspirations, but we also had an expectation around service levels and support. During the initial meeting with IGF, it was prominent that the team garnered a synergy, separating them from other funders. In addition, knowing that John Onslow is at the helm of the IGF team meant we were instantly intrigued as he came with a highly-regarded reputation from his time at Centric Commercial Finance.”
Paul Edmeades, ABL director at IGF, added: “We are delighted to welcome M2C2 as a client.As we do with all our clients, we took time to understand M2C2’s requirements to provide a bespoke funding solution that fits the needs of their business. An ABL package is useful to a business like M2C2,which has seasonal trading fluctuations or carries high stock value,to cover customer needs. We very much look forward to working with Neal and his team.”