How Hull's Normandy Holiday Homes found funding in a downturn to support its diversification.
Business Link's Andy Tuscher and Cooper
When caravan manufacturer Normandy Holiday Homes, based in Hull, was turned down for funding by a high-street bank, it could have spelt the end of the company’s future.
Instead it has shown, with Business Link’s support, how there are other sources of funding. It was able to arrange a £100,000 loan in two weeks.
With the caravan manufacturing industry ailing, managing director Gary Cooper saw an opportunity to diversify by building high-quality, wooden-clad lodges. After successfully expanding UK sales, he approached a high-street lender to improve cash flow. Having verbally agreed the facility, the bank then pulled out of the deal, blaming the credit crunch.
Without the finance in place, not only were the expansion plans under threat, the survival of the company, which employs 30 people, was at stake.
Cooper turned to Business Link adviser Alan Clegg who suggested Partnership Investment Finance, a fund for small businesses in the region. Within two weeks the money was in Normandy’s bank.
“Accessing the finance was crucial to the survival of the business since the static caravan manufacturing sector is, literally, on the floor,” says Cooper.
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