WIREDGOV

HH Cashflow Finance - which specialises in providing finance solutions for SMEs - is expanding its operations in Newport and creating 47 new jobs with support from the Welsh Government.

The company is part of Henry Howard Finance Group, a leading independent finance house with a national customer base that is headquartered at Langstone Business Village, Newport.

HH Cashflow Finance was launched in October 2014 following a £25 million investment into the Group from Cabot Square Capital and now requires new premises to grow its invoice finance lending business.

Bristol, which is a leading centre for trade and invoice finance, was under consideration as a potential new location but a £270,000 business support package from the Welsh Government secured the investment for Wales. HH Cashflow plans to expand its workforce from ten employees to 57.

Economy Minister Edwina Hart said:

"Financial and Professional Services are a key economic sector in Wales and also one of our fastest growing sectors so I am pleased that HH Cashflow will continue to grow and create jobs in Wales."

HH Cashflow lends against the value of unpaid invoices to help businesses improve their cash flow and offers a cost effective and often cheaper alternative to overdrafts. It can provide a solution for companies with a lack of working capital whose businesses are hampered by slow paying customers.

CEO Richard Pepler joined the group in 2013 to focus on introducing additional commercial finance facilities such as invoice finance and trade finance. He has a wealth of experience in this field and was previously CEO of ultimate finance group plc.

He said:

"However successful a business, and however sound their credit management, slow paying customers can soon reduce their working capital to unworkable levels. Cash flow finance provides a tried and tested answer to the problem. It's why our industry lends more money to UK SMEs than UK banks do in business overdrafts.

"HH Cashflow operates in a growing market and has underwriting capability following the investment from Cabot Capital which sets it apart from many of its competitors. To date it has committed to providing over £64 million funding to nearly 200 clients by the end of 2016 and aims to support a further 500 clients over the next four years. Support from the Welsh Government will enable us to grow the business in Wales and create a significant number of jobs over the next five years."

The Group, which includes Henry Howard Finance plc, HH Cashflow Finance, HH Asset Finance, HH Vendor Finance and HH Retail Finance dates back to 1996 when the founders set up on their own after leaving a major high street bank's commercial financial division.

Cabot is a leading provider of investment capital for small and mid sized companies in UK and Western Europe.