Established in 1986, the Foam Company are now entering their 31st year. They pride themselves on being a family owned and run business, manufacturing foam, memory foam and latex components for use within the furniture industry. In addition, they are one of the UK’s leading manufacturers of mattresses with their own brands of SleepShaper and Revitalise, whilst also producing, under licence, Mammoth Medical Grade FoamTM.
All their beds and mattresses are manufactured in Abingdon, Oxfordshire and as strong advocates of UK manufacturing, they ensure, where possible, that all materials are sourced from UK companies.
In order to continue their business growth, The Foam Company recognised the need to invest in their manufacturing process. The company’s mantra is “striving not to be the biggest, but the best” and this is reflected in their commitment to exacting precision within their manufacturing processes. Thus, state-of-the-art equipment would be paramount to the ongoing success of the business.
The business already owned one specialist Wintech mattress cutting machine and knew that a second machine would bring broad business benefits. However, a decision of this magnitude was not taken lightly, especially as the machine would cost a quarter of a million pounds.
“We made the decision to purchase a piece of equipment worth £250,000 that takes 3 months to build and 6 weeks to ship, that was the easy choice! The next step was to work out how to finance the item, fortunately we knew exactly who to call. Without hesitation we picked up the phone to talk with Chris Morris at NGI.” – Mike Nash, Managing Director
Mike has been working with the NGI team for several years. Originally, he contacted his Bank Manager who was unable to assist him with a finance deal and so he was recommended to contact Chris at NGI. From the very first meeting Mike knew he was in safe hands and NGI have facilitated several finance deals for the company since. When it was identified that additional manufacturing equipment would be required, the natural solution was to speak with NGI straightaway.
The Wintech mattress cutting machine that The Foam Company required is built to order in Australia. Providing a finance solution for the equipment was no easy feat, as Mike explains “the problem with sourcing from Australia is that country laws exclude you from having a hire purchase agreement. We therefore had to outright purchase the equipment directly from the supplier.
The NGI team came up with a solution of sale and lease back, where we purchased the machine directly and then upon installation were able to secure a finance deal for the full value. Having the quarter of a million pounds back in our bank, meant that we were able to boost our cash flow and lease the equipment at a very reasonable interest rate until the full value is paid back.”
Mike continues, “we were incredibly impressed with the speed of the financial deal provided by NGI. Once the machine was installed we had to pay the final 10% of the equipment cost to the supplier. Just 2 weeks after the installation was complete our asset finance deal was secured and the money was in our bank. Chris and the NGI team made the whole process incredibly easy and stress free, the paperwork for completion was very clear and they made the understanding of T&C’s very easy to process.
We look forward to working with NGI again to further facilitate our business growth”.