UK-based timber packaging company PEC Packaging has secured £2.5m ($3.05m) in funding from Skipton Business Finance.

The investment will facilitate the company's relocation to a larger facility at Brunswick Dock, near Liverpool's city centre, to bolster recovery and future growth.

The automotive industry, a key sector for PEC Packaging, experienced a significant drop in demand due to the Covid-19 pandemic.

This downturn impacted many UK manufacturers, leading to liquidity challenges exacerbated by unpaid customer invoices.

To navigate these challenges and support cash flow management, PEC Packaging engaged with Skipton Business Finance.

Skipton Business Finance provided a solution through an invoice discounting funding line worth £2.5m.

This form of financing is secured against unpaid invoices, offering PEC Packaging the necessary liquidity to manage its short-term financial needs.

PEC Packaging is a manufacturer of timber packaging products, offering one of the widest ranges of packaging solutions in the UK.

Established over 35 years ago, its clients include Jaguar Land Rover, Nissan UK, and Siemens.

PEC Packaging finance director Tiernán Rice said: “The invoice discounting support provided by Skipton Business Finance has truly transformed our business. As our core customers operate in the automotive industry, Covid-19 caused many financial headaches for us due to a lack of demand for products.

“It soon became apparent that well-managed finance support was needed to help the business through challenging times. As the market began to recover, we were able to use the working capital provided to support plans to scale up significantly, taking on additional staff to service our ever-growing customer base.

“We have also been able to move to a larger site at Brunswick Dock, Liverpool which provides us with the extra production capacity required to support our plans for growth.”