Vincents turns around five-week legals on £2m refinance deal

A Lancashire plastics engineering firm is set to launch a series of new products thanks to a £2m refinancing deal to support investment.

Freckleton-based Polytank Group turned to Vincents Solicitors to help secure the restructured loan with Barclays within a tight timescale.

The new arrangement saw Polytank move to Barclays from NatWest, with all legal arrangements made in just five weeks. The move has reduced the firm’s monthly repayments significantly, allowing for investment in new equipment to support its expanding product range.

Mark Alexander, head of commercial legal services at Preston-based Vincents Solicitors, said: “It’s great to see the bank recognising the benefits of supporting a business which is hungry for growth with a finance package which enables them to invest.

“As a family firm established more than 40 years ago and grown over time, Polytank has a number of different land and property titles across 20 acres, all of which were reviewed and the reports returned to the bank by the director’s deadline. We were pleased to be able to provide the service required within the tight timescale to avoid additional charges and allow for the purchase of new manufacturing equipment.”

Gary Fidler, Polytank Group managing director, said: “We are in a growing market with sustainability and home storage high on people’s agenda, and had a number of new product lines ready for development. We were looking for a new arrangement that would give us more freedom to invest in the business. As most of our assets are held in land, buildings and equipment, we needed working capital and looked for a bank and a refinance arrangement that would support our ambitions. We had two offers on the table and went with Barclays which offered the best deal.

“We got so far on our own but when we needed legal advice we were looking for someone to see us through within five weeks, in order to help us avoid some charges that were coming on our existing accounts and get the funds going back into the business quickly. Some solicitors were talking about two to three months but Mark was confident he could turn it around within our timescale, and he did. Thanks to this we can invest in all areas of the business, the trade, tanks and consumer sides, to respond to the improving market.”

Polytank is a plastics moulding company which employs 38 people and makes a range of commercial and consumer products. The company is launching its new range of rattan-inspired and timber-effect water butts at the 2013 GLEE (garden and leisure) exhibition in Birmingham this month.

The new product development has been supported by the company’s new financial arrangements and is in response to consumer demand for water harvesting tanks which are aesthetically in-keeping with the rest of their garden furniture. Additional product lines, including ancillary fixtures and fittings for the growing water storage market, will also receive added investment in the coming year.

Rosemary Riley, senior business manager for Barclays Business in Preston, added: “Polytank is a long established and successful family business operating in the top end of its sector. Barclays Business offered a comprehensive Relationship Banking proposal that demonstrated an understanding of the business and would deliver great value for the customer. “We needed to execute the legal aspects of deal at speed and, as we know the team at Vincents, were delighted when Polytank appointed them. The entire process was dealt with by Vincents in the most professional and efficient way ensuring that all parties were kept fully informed of progress and the deadlines for completing the proposal were met, resulting in a very satisfied client.”