A structural steel maker in Huddersfield is building on success after securing a five-figure funding deal.
CH Fabrications Ltd has built new premises and has taken on two new staff with the support of a Lloyds TSB Commercial Finance factoring facility.
The company, which now has 14 employees, specialises in the sub-let fabrication of steelwork and in its own design, fabrication and the erection of steel framed buildings.
The business was originally based at the home of founder Carl Hurst until he spotted an opportunity to diversify the firm’s operations after the closure of a local competitor.
Co-owners and directors Carl Hurst and Tony Bennett decided to build a bespoke factory on an 18,000sq ft plot of land on Leeds Road.
To help maintain production levels, the manufacturer has secured a £88,000 factoring facility from Lloyds TSB Commercial Finance – allowing the firm to gain a percentage of invoice sales before a client has paid its bill.
This has freed up cashflow for the business to purchase materials, which helps to meet the increased demand from new business wins since the move.
It now has the capacity to produce 80 tonnes of steelwork a week and plans to increase output further by securing larger contracts across the region.
Its production facility uses the latest CNC saw and drill lines to produce all types of steelwork, including portal frames, beam and column structures, trusses and general fabrication. It also has a painting facility, while its design team uses the latest 3D design software.
Mr Hurst said: “We started the company in 2009 as a small operation that manufactured iron gates for residential properties.
“As we built a solid customer base and won more contracts, we decided it was time to increase our production capabilities and we now have a factory which is tailored to our needs.
“We spotted a gap in the market to provide both a fabrication facility for the steelwork industry and also provide a commercially-aware design and build service to the construction market.
“The factoring facility allows us to invest in future client projects without having to wait for payment from completed work.
“ Our ambition is to secure even bigger contracts across Yorkshire so we can expand further and create more local opportunities for the community. We now work on a commercial scale and offer fabrication as well as welding services.”
Charlotte Jackson, regional manager at Lloyds TSB Commercial Finance, said: “CH Fabrications was established four years ago and since then it has grown into a busy and successful supplier of steel fabrication.
“This has been delivered through the determination and hard work of Carl, Tony and their team and we are committed to supporting the firm with its ongoing expansion plans and business aims.”
She said: “A factoring facility acts as an alternative funding source and can be helpful for a growing firm.
“The gap between an invoice being raised and a client payment can vary between a week and a few months and it is important that a manufacturer has the funds to work on new projects without disrupting the daily running of the business.”