Eagle Vending serves up great results after funding

A Rochester-based vending machine business is set to further its commitment to providing school children with healthy snacks after securing a £50,000 factoring facility from Lloyds TSB Commercial Finance.

Established in 1995, Eagle Vending supplies, distributes and stocks vending machines.

The firm is the UK’s sole distributor of fair trade vending machines and serves schools, universities and businesses in the South East with healthy food and drink.

When the business found it needed a cash flow boost to facilitate growth, it approached Lloyds TSB Commercial Finance, the invoice finance division of the bank, which provided a factoring facility.

By securing this funding, the firm was able to leverage the value of its issued invoices to increase its financial headroom to invest in its long-term growth strategy.

As a result, Eagle Vending is now in a strong position to bring a new product to market this year, a hot chocolate machine which dispenses low calorie beverages, approved for use in schools.

The business is also on track to double turnover this year as it builds on increased opportunities post-recession.

Mike Steele, managing director at Eagle Vending, said: “Moving into providing fair-trade, healthy food and beverages was an important step for the company and we have seen increased popularity and acceptance of the products over the past few years, helped along by high-profile campaigners like Jamie Oliver.

“As the economy improved, we found we needed a cash flow boost to support our organic growth and ensure we had sufficient headroom to capitalise on opportunities such as launching our new beverage dispenser.

“The factoring facility has given us increased liquidity and flexibility by growing in-line with sales. It has also freed up a considerable amount of administration time as it has a built-in debt management function to chase outstanding invoices.”

Paul Rice, regional manager at Lloyds TSB Commercial Finance, said: “A business that is best-placed for growth as the economy recovers is one which has thought ahead and put in place a good working capital structure.

“The factoring facility which Eagle Vending has utilised is based on the firm’s issued invoices, releasing considerable value which previously would have potentially been tied up for months in outstanding bills.

“It is encouraging to see a business which has a well-established client base investing in the future and leading the market with an ambitious strategy.”