The Alexir Partnership, a Kent-based packaging manufacturer serving the food industry, has secured a £750,000 loan from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to support the company’s cash flow during the pandemic as well as a six figure Trade Finance Facility to fund supply chain for new projects.
Established in 1989, The Alexir Partnership provides packaging design and manufacturing services to clients including Sainsbury’s, Pret A Manger, Oxo, EAT, the Real Food Company and Hovis. However, as clients in the ‘Food to Go’ sector were required to temporarily close their outlets, The Alexir Partnership faced order cancellations as well as a reduction in new projects.
The seven-figure funding package from HSBC UK has minimised the anticipated impact of these lost orders on The Alexir Partnership’s cash flow and protected the jobs of its 160 employees as well as enabling the business to take advantage of new opportunities. It will also ensure the company can focus its efforts on supporting other areas of the food sector, such as supermarkets, which face continued high demand from customers.
Ian Davison, Financial Director at The Alexir Partnership, said:
“The support from HSBC UK has helped us regulate cash flow and fulfil urgent orders, meaning our team has been able to quickly adapt to the dramatic changes during the pandemic. We can now focus on continuing production at both our sites and on growing our portfolio of innovative and environmentally friendly packaging solutions, which is key to our growth.”
Ian Nichols, Relationship Director, HSBC UK, commented:
“As a business which supplies the food industry, it’s vital that The Alexir Partnership has the resources to continue operating at full capacity, as well as providing job security for its employees. We were delighted, that through the CBILS scheme, we are able support a critical part of the food supply chain whilst also bringing HSBC’s International Trade expertise to the fore to support new opportunities. We look forward to seeing the business not only flourish during this difficult period, but also grow its services and impressive client list in the future as a result.”
HSBC UK is working closely with the Government and UK Finance to identify emerging issues and make sure customers and businesses have the advice and support they need. For tips and advice for businesses around planning for any possible disruption, visit www.business.hsbc.com/novel-coronavirus.
The package of support that HSBC UK has announced for business customers includes:
- Launched BBLS, CBILS, CLBILS and CCFF
- Allocated £5bn to help businesses that need support
- Removed the £100 Small Business Loan fee to relieve the pressure faced by SMEs across the country
- Removed informal overdraft fees – As of 1st April we will no longer apply any Informal Overdraft fees
- Offering repayment holidays to free up cash within businesses
- Stopped all unauthorised overdraft charges
- Reviewing overdrafts or trade loans to allow stock to be held for longer
- Offering companies involved in the supply and manufacture of ventilators preferential pricing, extended repayment terms on loans and fast track approval times to support the unprecedented demand on UK hospitals.
- We have also extended that support to customers that can give immediate help to essential public services and vulnerable people. We are contacting clients involved in the manufacture and supply of Personal Protective Equipment to offer preferential finance and, where possible, the direct purchase of supplies and equipment for essential public services.
- We will also offer similar terms to clients involved in the wholesale of food.
- Our relationship managers have been proactively contacting customers to see what help their businesses need.
- We’ve launched a coronavirus helpline to support any customer queries and a dedicated coronavirus hub on our website.
- For businesses trading internationally:
- £3bn to importers and exporters that need additional support
- pre-approved 60-day extensions on trade loans for customers with a sound trade loan/financing record
- a one-hour turnaround on the issuance of Shipping Guarantees, enabling customers to transfer or receive goods from their counterparty faster
- a dedicated helpline that connects directly with trade finance specialists (0800 783 1300, open 9am – 5pm Monday to Friday), in addition to the support being offered by relationship managers