A Christchurch company which has designed, engineered and tested a state-of-the-art electric fireplace has secured a six-figure finance package from HSBC UK to help it export the product into international markets for the first time.
British Fires, which belongs to the Focal Point Fires group, has used the funding to support cash flow and make critical stock investments amid the coronavirus crisis, allowing the business to progress a critical five-year distributor deal for the North American and Canadian markets.
British Fires has spent the last three years developing its unique New Forest Electric Fire; a modern take on the traditional electric fireplace, which it currently sells at selected distributors across the UK.
The funding, secured as part of the government-backed Coronavirus Business Interruption Loan Scheme (CBILS), has enabled the business to finalise the development of the new product and export the stock to both North America and Canada ahead of the winter season.
Carl Richards, Chairman of British Fires, said:
“Just before Covid took hold, our New Forest Electric Fire had just won a significant industry award at the New Orleans expo, presenting us with many opportunities to partner with well-connected distributors. Over recent years, we’ve seen a dramatic shift away from solid fuel appliances to electric fires as an alternative source of heat, so we knew we had to move fast to get the product finalised and shipped ahead of the crucial winter months but were nervous about making a big investment at such an uncertain time. HSBC UK’s support, led by our relationship director Richard Hoyle, came at just the right moment and has been instrumental in getting our chosen distributor deal over the line.”
Gareth Evans, Area Director for Hampshire and Dorset at HSBC UK, added:
“We knew British Fires had a small window of opportunity to get its new product out into the international market before its competitors, so we moved quickly to put a funding facility in place to make its 2020 ambition a reality. The CBILS loan means the initial five containers will soon be on their way to North America in time for critical pre-winter sales. This has been a fantastic exporting success story in some of the toughest global market conditions we’ve known; we’re delighted to have been involved.”
The New Forest Electric Fire has patented flame technology and is certified and tested for the US market. Its US partner, Miles Industries Vancouver, owns the Valor brand name and sells into 800 retailers across Canada and North America. British Fires will now continue discussions with other distributors as it begins its growth journey across Europe and the rest of the world.
For more information about British Fires and the New Forest Electric Fire, visit www.britishfires.com.
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.
HSBC UK has already announced the following measures for its business customers:
- 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