SME lender Reward Finance Group has provided North-East firm Speedflex with a £500k revolving facility to assist the manufacture and delivery of its fitness machines.
Reward Finance Group was introduced to the company by Peter Cromarty of North-East based intermediary, Corporate and Commercial Business Solutions.
North-East based Speedflex, which was established and funded by entrepreneur Graham Wylie, one of the original founders of Sage, and Paul Ferris, ex Newcastle United Physiotherapist, provides specialist gym equipment.
It supplies gyms throughout the country and has 14 of its own studios operating in the UK. The funding will help to deliver 80 units to these locations.
Speedflex said it would use SME funding for the stage payment of the manufacturing and delivery process.
Speaking about the investment, group finance director of Speedflex, Mark Simpson, said: “We have had a great response to the new technology, as gym owners can see it will make their facility much more inclusive, leading to increased membership, as there is no barrier to age or fitness levels.
“We have had to act quickly to meet the demand for the machines and while this could have been funded from further internal investment, the process ideally suited utilising a revolving facility.
“We are therefore grateful to Reward who quickly recognised Speedflex’s potential and provided us with a flexible funding solution, which met perfectly with our requirement. The facility will enable us to settle stage payments, as they become due, and reduce the facility at the point of sale. It will also allow us to grow the business at the pace we require.”
Alan Sanderson, portfolio manager at Reward Finance Group, said: “The amount of orders being received for the Speedflex machines demonstrates that this new technology is a great addition to the gym market, moving forwards. We therefore had no hesitation in providing a flexible funding solution to help the company quickly fulfill the orders and facilitate further expansion, as demand dictates.”