In November last year, Porky Whites, a premium British sausage brand that had been running since 1935, was at the brink of collapse. Independent Growth Finance (IGF) provided £750,000 of funding to the company after Porky Whites had been let down by its bank. This ensured that the family-owned business was in a position not only to survive, but to thrive.
IGF provides asset-based lending, which allows businesses to draw on the value of their own machinery, property and stock. This allowed Porky Whites – which provides sausages to retail, wholesale and foodservice – to access more funding than would have been available through traditional routes.
A combination of external factors pushing up production prices and a pricing gap in one of its retail contracts had left Porky Whites facing administration. The management team hurried to find a way to fund a buyout and keep the family’s legacy alive.
After the company and assets were bought out by the managing partners, the company name had to be changed. This proved challenging, with 60% of their stockists requiring them to start again as new suppliers. With some large supermarkets this took up to three months to be processed and therefore for Porky Whites to be paid.
Having the funding facility in place meant that the business could run on pro forma invoices with companies to rebuild trust. This allowed Porky Whites to set expectations with customers without needing to ask for payment until after delivery of the goods. IGF was able to further extend the initial facility to allow the business to weather the storm.
Fran Wyatt, Managing Director at Porky Whites Limited, commented: “It was a really difficult time for cash flow and getting customers back onboard. The process of getting paid by supermarkets was very slow. IGF supported and flexed with us as we began to hit our funding limit, whilst still running a successful business. IGF really pulled us through that journey.”