- Company: Static Control Components (Europe) Ltd, is the European subsidiary of Static Control Components Inc the world's largest manufacturer and global distributor of parts and supplies supporting the laser cartridge remanufacturing industry. Founded in 1986 in North Carolina, USA, their annual turnover is now $300million, and the turnover of the European operation is £50million.
- Business situation: In 2006, the company decided they needed a truly global financing facility and turned to Coface.
- Solution: The company took out a Confidential Invoice Finance facility, which gave them the flexible finance solution they needed.
- Result: Static Control benefits from a truly global solution which has released their working capital, increased their buying power and released them from the financial constraints imposed by their previous financier.
The Company
Static Control Components is a manufacturer and global distributor of parts and supplies supporting the laser toner remanufacturing industry. They were founded in 1986 in North Carolina, USA. They now operate 20 manufacturing plants throughout the world and have an annual turnover of $300 million. Their European Office is located in Reading, where they employ 146 people.
As a market leader, Static Control have made huge investments around the world to serve their customers with unparalleled quality and the very highest levels of service.
Business Situation
As Static Control grew both in terms of value and geographical coverage the company’s existing financier was unable to fund key areas of growth. Static Control needed a finance partner who could deliver a global solution - so they turned to Coface who are the only financier in the UK that truly allow their clients to operate in multi currencies and on a global basis.
Static Control looked at a number of leading financiers. However, one was unable to underwrite the deal as it was too large for them and the other could not deliver a global solution. Static Control had also encountered issues as a result of their existing financier’s limitations on a number of key currencies, including the US Dollar and Euro. These limitations meant that a large volume of money was tied up in the business.
The Coface Solution
Coface were able to offer Static Control a complete solution to their problems – their Confidential Invoice Finance facility which is now in place across all their operating currencies, including Sterling, Euros, US Dollars and South African Rand.
Implementing this facility has had significant benefits for Static Control, such as releasing their working capital, increasing their buying power and releasing them from the financial constraints imposed by their previous financier - which was also their banker.
Result
Static Control now enjoy the security of knowing that they are working with one of the top three providers of credit management services in the UK. They have benefited from Coface’s ability to act very quickly and to deliver the exact objectives that were agreed at the outset. Coface’s Invoice Finance facility has enabled funds to be released instantly, which has significantly improved the company’s cash flow.
This is summarised by Steve Weedon, Chief Executive of Static Control Components, who says "After using financiers who had an international presence but were unable to provide a solution that reflected this, we are finally working with a financier - Coface - that is truly global. We can relax in the knowledge that we are working with one of the top three providers of credit management services in the UK. The Coface team are highly professional, able to act very quickly and have met exactly the objectives we agreed."
