Debt funding growth with Seneca

Date: 08/06/2020
Author: Andrew Currie
Company: Seneca Trade Partners

Aston Microphones Ltd achieves growth ambitions following stock funding from Seneca Trade Partners...

Aston Microphones are the UK’s sole designer and manufacturer of high-quality vocal and instrument microphones.

The business was founded in 2015 and has grown rapidly since inception under the ownership and guidance of James Young, Alan Gavin, Paul Germain and Phil Smith. Support from the professional music community has been very strong with over 600 high-profile artists, producers and engineers endorsing and using Aston Microphones both in the studio and on tour.

In 2019 Aston identified the need to boost production of components and increase UK stockholding if they were to achieve their growth ambitions for the following year.

A popular option for funding growth in these situations is via an injection of Private Equity capital. Trade Finance is not normally considered suitable in the absence of confirmed orders and especially where the goods are not finished but are instead components going into a manufacturing process.

Flexible stock funding from Seneca provides a unique solution for business owners reluctant to dilute their shareholding whilst on a growth trajectory.

In the case of Aston, Seneca Trade Partners supported the business with a highly flexible Trade Finance solution that allowed the purchase of components for manufacturing without requiring confirmed orders. The Seneca financing revolved in line with their increasing production schedule, enabling the business to focus on keeping pace with its rapidly growing order book. The facility had no usage restrictions placed on the financed stock, so the business continued to import, manufacture, and ship worldwide without any change to existing production processes.

With this funding in place Aston was able to exceed their growth targets and the business has now refinanced from Seneca to mainstream bank finance as planned.

James Young, Aston Microphones CEO, said ‘Seneca Trade Partners moved very quickly in order to get this facility set up for us. The facility has worked flawlessly and has delivered exactly what it was designed to do, which was enable us to increase payments to suppliers to meet growing demand for our products and to increase our warehouse stockholding. The whole team at Seneca have been excellent to deal with and at no point could we have asked for better support. Working with Seneca has enabled us to successfully deliver the planned growth of Aston Microphones and we are now excited to continue the next phase of our journey as we move to more mainstream bank facilities.

Chris Divers, Director at Seneca Trade Partners said “Aston Microphones have been a fantastic client for us. The quality of their products and the professionalism of their whole business stood out from day one. In many ways the biggest compliment we can receive from businesses who use our growth-focused Trade and Stock finance products is when they outgrow us and move on to more mainstream finance. This outcome is what our products have been designed to accomplish in partnership with our SME clients. We have designed our Stock finance products specifically to assist companies like Aston hit their growth targets whilst maintaining sole ownership of their business, so they benefit from the full value of their hard work.”