Partner Article

Preston lighting company succeeds after bank snub

Preston-based Lumenata Lighting Design, which provides lighting design and installations for both commercial and domestic applications, is expecting to increase turnover from £240,000 last year to more than £600,000 this year and create new jobs, despite having been written off by its bank.

Managing director Paul Hindle thought he would have to close the business and make redundancies when he received an email from the manager of his high street bank at 7.00pm one Monday night advising him that, with immediate effect, they would no longer be funding him.

The shocking news followed a difficult 2014 for Lumenata Lighting Design as Paul was affected by a number of personal issues which had an impact on the business. Although the bank was kept fully aware of the situation, it did not like what was happening and so no longer wanted to fund it.

Fortunately a new factoring facility of £100,000 was quickly agreed with Manchester-based Ultimate Finance enabling Lumenata Lighting Design to win a number of major contracts, which have since dramatically increased turnover and led to new job creation.

Commenting on the situation, director of Lumenata Lighting Design, Paul Hindle said,

“I was so shocked to receive the email out of the blue and was upset the person I dealt with on a personal basis hadn’t had the courtesy to pick up the phone and talk to me.

“Naturally I went into panic mode because without invoice finance I could not operate the business. I was dealing with some large contracts and while I was waiting to be paid for completed jobs I needed working capital to buy components from the manufacturers for the new projects I had won. I was left completely in the lurch without any warning.

“Fortunately Ultimate Finance quickly understood the business, saw the potential for growth and had no hesitation in coming to my assistance by providing the new facility, which saved us.”

Regional director at Ultimate Finance, Clive Briggs, is not surprised Lumenata Lighting Design is doing so well.

“Paul and his team have built an excellent reputation as a leading lighting design consultancy dealing with some blue chip clients across the UK. It was plain to see that the company had encountered problems due to Paul’s circumstances but it was clear that he had overcome them and was able to concentrate fully on the business.

“Unfortunately the company’s bank did not recognise the cause of the blip nor the potential of the company and literally left them high and dry. SMEs are the life blood of this country and companies with the potential of Lumenata Lighting Design need the support of funders.

“However, there are still too many instances which demonstrate traditional banks are still reluctant to lend, as well as nightmare scenarios such as this where facilities are withdrawn without any prior notice.”

This was posted in Bdaily's Members' News section by Peter Downey .