1pm, the Bath-based specialist small business lender, has stepped in to support a tyre recycling firm with a £100,000 facility under the government-backed coronavirus loan initiative.
The financial support for AC Tyres, which offers sustainable tyre disposal services across the UK, is the latest loan arranged by 1pm under the Coronavirus Business Interruption Loan Scheme (CBILS).
1pm recently became an accredited CBILS lender, meaning – just like mainstream lenders such as the high street banks – it is able to provide finance facilities to eligible small and medium-sized enterprises (SMEs) across the UK that are experiencing disruption to their cashflow.
Under the scheme, smaller businesses can benefit from no upfront costs, no interest payments for the first 12 months, lower initial repayments and no personal guarantees required.
AC Tyres handles more than 20,000 tyres a week from its two bases in Warrington using a large fleet of vehicles for collections and disposals.
Having built a strong foundation of trust with a growing client base over the past 12 years, the business prided itself on providing a market-leading, ethical service.
However, when the lockdown resulted in the temporary closure of motor garages, the firm found itself unable to process tyre collections, leading to an immediate disruption in sales and cashflow. Due to the inevitable shortfall in income, the business needed an urgent cash injection.
AC Tyres were introduced to the 1pm Group by West Sussex-based Halo Corporate Finance, which sits on 1pm’s panel of expert brokers. Working closely together, Halo and 1pm were able to swiftly tailor a funding solution that would bolster the firm’s cash position during this challenging time.
AC Tyres director Andrew Sommerville said: “We initially struggled to find a financier who would listen to us and package a solution that could support us during these challenging times.
“1pm and Halo understood the challenges we were facing and worked quickly to provide us with a funding solution. Within a week or two of our application for a CBILS loan, we received our funding.
“The quick turnaround has been instrumental in helping us kickstart our operations as government guidelines begin to relax.”
1pm head of loans Alun Winter added: “The CBILS scheme is a vital lifeline for many SMEs and as a delivery partner we are committed to working with our broker partners to ensure our funding solutions reach those who need it.
“Stepping in as a supportive funder, we help UK businesses like AC Tyres navigate through these uncertain times and come out of the other side stronger.
“We are delighted to have been able to support Andrew and the team as they use the funds to support working capital and drive the business forward.”
Established in 2006, 1pm provides a range of finance facilities to the SME sector spanning asset finance, commercial loans and vehicle finance through to invoice finance.
