P2P Loan Leads to 20% Increase in Turnover

When Dencowear, an award-winning uniform manufacturer and supplier based in Leeds, landed a bumper £400k of new orders from three UK universities, the family owners immediately realised they would need additional funding to finance the advance manufacture of the full range of garments required in all the various sizes. If the orders were to be satisfied without compromising their reputation for quality and service – one that had been built up over three generations since 1966 – they knew they had to move fast.

The management team sought advice from other business owners in the sector and, as a result, approached specialist lender RateSetter Business Finance. After RateSetter representatives had paid the Dencowear factory a visit to see the operation first-hand, and all due diligence processes satisfied, the facility was quickly made available – even though the loan application had to be processed over the busy Christmas period.

The result has meant that Dencowear has not only been able to satisfy these orders, but has also been able to seek other contracts with potentially higher profit margins. Managing Director Ilan Sherman said he was “confident that the company’s record of achieving year-on-year profit growth of over 20% will be maintained. The finance has allowed us to grow our business, to create more jobs and also to improve our productivity without compromising the level of service.”

He added: “The finance has only been in place for a relatively short space of time, but already we have been able to secure more new business with better margins so we can see considerable benefits going forward.”

Tamara Renshaw, Credit Relationship Manager for RateSetter Business Finance’ Midland’s region, commented: “This is a brilliant outcome for everyone because the finance has been used to boost growth and improve productivity. In this case, we were able to provide the finance very quickly, allowing Dencowear to deploy the funds and get on with running the business.”

“Being located in Leeds, Dencowear is part of a particularly vibrant business community: our own research shows that over half the companies in Yorkshire (55%) are looking to grow, which is well in excess of the national average. The statistics also show that a growing number of business owners (27%) now trust P2P lenders as a source of finance. The speed at which P2P loans can be approved is enabling Yorkshire-based businesses such as Dencowear the opportunity to fulfil their ambitions of growth.”