Based in Northern Ireland,is a long-standing, profitable business specialising in the wholesale distribution of bathroom and plumbing products.
The SME supplies bathroom showrooms across Ireland. They pride themselves on providing a fast, efficient service and have an excellent reputation in their sector.
CM Marketing recently completed a management buyout (“MBO”) which Close Brothers helped to finance. They use anfacility and a cash flow loan, which provide working capital on an ongoing basis.
Coronavirus business challenge
Coronavirus impacted the way that CM Marketing usually operates. As a result of lockdown, many trade showrooms and builders merchants closed their doors, and sales slowed down. In addition, they experienced an increase in slow repayments as the pandemic impacted their customers.
The business acted quickly to modify day-to-day processes and reduce the long term implications COVID-19 could have on their trading. Their 32,000 square foot warehouse allowed social distancing measures to be put in place, some staff were furloughed, and they invested in relevant PPE and hand sanitiser. They also opted to switch to a third party courier to enable staff to stay local and avoid unnecessary contact with others.
While these steps enabled a reduced service in the short term, projections suggested that a challenging trading market could still disrupt their cash flow.
Following discussions with their dedicated relationship manager regarding COVID-19 responses and ongoing strategies, CM Marketing decided to apply for additional funding through the.
We worked closely to assist with the application and, due to the availability of thorough business plans and forecasts, they were able to access the term loan quickly. The capital was deposited in the account less than two weeks after initial conversations about CBILS.
The additional liquidity has enabled the company to make critical decisions regarding payments and trading in the unusual landscape created by the pandemic. This means they can maintain important relationships and preserve supply chains where possible.
Neville Robinson, Director at CM Marketing, said:
“Applying for a Coronavirus Business Interruption Loan was a simple, painless process for us, with less than two weeks between our first conversations and receiving the funding. We were delighted with how easy it was to access funding from Close Brothers using existing information and reports.
“The loan has enabled us to keep our supply chain open during this challenging period. Our relationships with suppliers are very important, and they are built on clear communication and trust, so the additional liquidity has given us peace-of-mind that we can keep up with and discuss payment terms openly.
“It will also be a great help as the wider markets begin to reopen – we’re up for the challenge and we’re here for the long haul.”