The pharmaceutical wholesaler Metropharm has secured a £3m revolving credit facility from 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 grown rapidly during the past five years, the firm is now targeting Wholesaler Dealer’s Authorisation (WDA) and aims to become MHRA-approved, with the goal of moving into the licensed pharmaceuticals market.
The firm’s success means that it has outgrown the credit appetite of its existing lender, which provided the business with an invoice finance facility. Growth Lending’s investment 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 that provides growing businesses with independent funding recommendations. “Metropharm is a long-standing client and I have worked with the company since it 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.