Member Article

Laundry Direct cleans up with Positive deal

Barrow-based commercial laundry company Laundry Direct is set for growth after securing a £50,000 facility from Manchester-based invoice finance provider Positive Cashflow Finance.

The business reported revenues of £300,000 in 2013 and hopes to increase this to £400,000 over the next 12 months.

Laundry Direct provides commercial laundry services to guesthouses and hotels in the North of England. Prime mover, Alex Mauro recently acquired the business that was originally established in 2010 and employs 12 members of staff.

Alex is better known for his previous restaurant related business ventures that include including Stock in Manchester and Osteria Mauro in Mottram St Andrew.

The new funding facility from Positive will provide a significant boost to Laundry Direct’s cash flow, offering the Barrow business a chance to accelerate growth. It will use the additional finance to strengthen its existing client base, as well as investing in additional stock and equipment to prepare itself for the busy summer period in the hotel industry.

Alex Mauro, managing director at Laundry Direct, said: “With a growing list of clients wanting to come on board, the business needed an injection of cash to support expansion.

“Unfortunately, due to the seasonal nature of the commercial laundry industry, it proved difficult to secure a bank loan. Invoice finance has provided a fantastic opportunity to maintain the momentum of the business and we’re now in a much better position to achieve our future growth plans.”

Phil Chesham, sales and marketing director at Positive Cashflow Finance, said: “Laundry Direct is a great example of a company with huge growth potential being held back by a lack of bank funding.

“The commercial laundry sector is extremely attractive, as tourism continues to see a boost each year. We are delighted to be able to offer the company our support, and look forward to working closely with Alex and the rest of the management team.”

This was posted in Bdaily's Members' News section by Nick Chapman .