Christmas products company, Mail Order Online Ltd, is meeting unprecedented demand for its range of trees, decorations, and lights, with help from independent finance provider, Reward Finance Group.
The Southport-based company, which was established in 2010, is preparing for record sales through both its own online site, WeRChristmas, and via the large internet retailers it supplies with its products.
To enable it to buy additional stock, which will reach £3m this year, it has arranged a short-term working capital injection, using an invoice finance facility from Reward. This will enable it to draw down money tied up in invoices within a few days, rather than waiting up to 60 days for them to be paid by its customers.
Speaking about the rise in sales, John Rushton, director of Mail Order Online, said, “It will be ten years this Christmas since we began trading and we have witnessed year-on-year growth over that time.
“However, this year has seen record orders from the large internet retailers we supply. This could be down to fact that more people are shopping online, due to the current restrictions, or maybe because people will want to spread some festive cheer following what has been a trying year for all of us.
“To meet this demand, we needed a short-term injection of working capital to buy even more stock, as our money was tied up in customer invoices. Naturally, the Christmas products market has a relatively short trading cycle, so if we waited a couple of months to be paid by our customers, the season would be over and we would have missed out on the additional sales.
“We are grateful to Reward, who we have worked with for the last four years. Knowing our business well and our trading history, they moved quickly to put the invoice finance facility in place to support the growth of the company.”
Commenting on the arrangement, Karen Vincent, relationship manager at Reward Finance Group in Manchester, said, “John and his team have built an extremely successful company and their luxury Christmas products are highly rated by the UK’s largest internet retailers, as well as their own customers.
“Working with them over the last few years we have seen the impressive way the company operates and the extremely successful business they have built in the last ten years. By using our Invoice Finance Plus product on a short-term basis they have been able to free up the money owed to them to build up the stock in order to take advantage of the increased demand.
“We are sure their festive products will bring a great deal of happiness to people this year.”