Jaltek Systems, a manufacturer of complex, electronics assemblies, has secured a GBP1 million funding facility from Independent Growth Finance, as it continues to deliver on its rapid growth strategy and support its clients to push the boundaries of technological innovation.
The company provides a full suite of services to its clients, offering both design and manufacturing solutions to a diverse range of regulated sectors, from clean energy and aerospace, to space satellites.
The blue-chip electronics industry is always expanding, particularly driven by concepts such as the internet of things. To continue to stay ahead, Jaltek wanted an increased working capital line that would grow with the business and allow them to capitalise on new opportunities. This facility also enables the company to continue to partner with early stage businesses from project conception stage to realisation.
The highly specialised electronic products manufactured by Jaltek necessitates low to medium production volume production. Meaning that reducing overhead costs during both the development and manufacturing stage is critical. To enable this, the company wanted liquidity and flexibility in order to maximise working capital and move away from a month-end funding focus. Thus allowing the management team to concentrate on the strategic direction of the business.
Jaltek focuses on client servicing and product delivery, overseeing technological development from design to implementation stage. With a fully qualified and accredited team, it is uniquely well placed to support early stage start-ups as well as established mature blue-chip clients.
The company was previously financed by a GBP450k overdraft facility from a leading high street bank, but the facility was unable to provide the desired level of flexibility to support rapid growth and expansion. Jaltek decided to look for alternative financing to support the delivery of its growth strategy, allowing the required flexibility to be able to support a diverse range of clients, each with their own specific requirements.
Jaltek was looking for a partner who understood the industry, and the need for both strategic design as well as reliable manufacturing processes. The ambitious management team decided IGF was the right partner, selected for its professional and pragmatic approach. Resulting in the provision of a GBP1 million facility with sufficient capacity for additional funding as the business continues to achieve its growth targets.
For this high growth business, invoice financing provides a facility that grows in line with the business as it continues to realise its growth aspirations, enabling a steady stream of working capital. Providing more operational freedom compared to traditional funding methods, such as overdrafts.
Nick Stern, CFO of Jaltek Systems, explains: “As a business that prides itself as being a market leader, we have the privilege of supplying both design and manufacturing services to a fantastic spread of household names at the forefront of technology and innovation. To enable us to stay ahead of the game, a dynamic working capital line is required to stay abreast of industry developments and remain proactive with our clients. Allowing us to enhance our business operations and routes to market to enact growth, rather than just maintaining stable mature performance.”
“We decided to partner with IGF because they took time to understand our business, and have significant appetite to support us, providing a flexible funding solution with sufficient headroom to accelerate the realisation of our goals. The beauty of using an alternative finance provider such as IGF, is that they are able to push the envelope in terms of facility size and covenant flexibility. We pride ourselves on working together with our clients from the ground up, so it is a pleasure having a funding partner who similarly invests themselves in our business.”
Jaltek has used the additional working capital to invest heavily in the design side of operations. Enabling engagement with early stage companies and the provision of design services for cutting edge technology. Creating meaningful partnerships.
Jeff Greenfield, ABL Director at IGF, says: ‘It has been a pleasure working with Jaltek Systems, the mission critical electronics they deliver is out of this world, literally! We have enjoyed getting to understand this dynamic and fast-moving industry, and the range of clients that Jaltek works with. The business has a hugely experienced and professional management team, that gives us comfort in their ability to deliver on their strategic objectives. Helping them anticipate growth opportunities with funding headroom. We anticipate a long and fruitful partnership into the future.’
