Commercial loan is the ‘Icing on the cake’ for successful confectionary company
Financing a crucial move...
At a glance:
- Business located on HS2 route
- £150k 12 month Commercial Repayment Loan
- Working capital required to assist factory move
Houssam Haddad created Sweetland Bakery over 20 years ago in Europe’s largest industrial estate Park Royal which is situated in West London.
Specialising in Middle Eastern sweets and desserts, Houssam along with his brothers Akram and Wassim have grown the business to employ over 50 people and manufacturing over 1,000kg of baklava per day. A couple of years ago the business was informed that the site on which their factory was located was earmarked as part of the route for the new HS2 project. This compulsory purchase order would impact others as well as Sweetland and therefore they decided to turn to their MP Rupa Huq for assistance. After understanding their plight Huq invited the Transport Minister Robert Goodwin to review the proposal and help lobby Parliament to provide a better deal for the business owners affected by the plans.
The lobbying enabled the business owners to receive an appropriate notice period from HS2, and a suitable agreement, allowing the team at Sweetland to seek out new premises and ensure the smooth continuity of business.
A new lease hold site was discovered and the new location has enabled the Sweetland team to plan to create a purpose built factory which will enable them to continue production.
The team had approached their bank for funding but hadn’t been able to agree a finance package to suit to meet the needs of the business during the HS2 negotiations. This is where Catalyst came in. We were able to agree a commercial business loan, allowing the Sweetland team to access cash to assist with the building of the new factory.
Andrew Prodromou CEO of Sweetland commented “We had never thought about using an alternative lender such as Catalyst before. This type of short term funding wasn’t something we had come across, but it has worked perfectly for our situation. The team at Catalyst have been really helpful, they have guided us on how the finance could be structured and assisted in discussions with the bank too, especially when it came to agreeing a deed of postponement on the debenture.”
The team will have to move out of their existing premises by November but with the funding from Catalyst. The new factory will enable production to continue and enable the company to continue their growth.