The pharmaceutical wholesaler Metropharm has secured a £3m revolving credit facility from the alternative funding provider Growth Lending, under the government’s Coronavirus Business Interruption Loan Scheme (CBILS).
Incorporated in 2016, Metropharm specialises in the sale of over-the-counter medicines, fast-moving consumer goods (FMCGs) and health and beauty products. Having experienced rapid growth and success during the past five years, the firm is now aiming for Wholesaler Dealer’s Authorisation (WDA) and to become MHRA-approved for a move into the licensed pharmaceuticals market.
The firm’s rapid growth means that it has outgrown the credit appetite of its existing lender, which serviced the business with an invoice finance facility. The £3m investment from Growth Lending, under the government-backed CBILS scheme, will support Metropharm as it embarks on its next stage of growth, by refinancing this facility as well as supporting the company’s working capital needs as it continues to navigate the impact of Covid-19.
“Growth Lending has been able to provide a bigger facility than our previous lender, injecting significant cash flow into the organisation during the pandemic, which has been vital for business continuity and growth,” says Metropharm’s managing director, Rupesh Patel. “The monthly reconciliation is clear and simple, so the facility is also easier to manage than our previous arrangement.”
“We are delighted to be supporting Metropharm with a CBILS loan,” says Jack Trowbridge, commercial director at Growth Lending. “Our team has extensive experience of underwriting concentrated debts, so our revolving credit facility enabled us to provide greater leverage than the firm’s previous lender.”
Metropharm is also supported by Funding Solutions, an organisation offering independent funding recommendations for growing businesses. “Metropharm is a long-standing client with which I have worked since the business was in its infancy,” says Emma de Jesus, business development manager at Funding Solutions.
“As you would expect, its requirements have changed as the business has evolved and Growth Lending was able to provide a revolving credit facility that increased cash availability, dramatically reduced costs and was easier to manage,” she says.