The business, which manufactures compounds, blended feeds and co-products for farm animals, plans to use the refinancing package to capitalise on opportunities in the animal feed market.

James Powell, finance director at BOCM PAULS, says, ‘In order to stay on top of this market it is essential to have sufficient financial headroom to adapt to changing prices and to have the financial resources for growth.’

He adds that the new funding package will allow the company to ‘progress a number of new business and acquisition opportunities’.

Sam Owen, client manager in the large and major corporate division of Lloyds TSB Commercial Finance, comments, ‘The business benefits from a strong operational management team that is focused on driving increased efficiencies across the company and making strategic acquisitions.’

BOCM PAULS will also use its boosted cash flow to develop green initiatives, including reducing CO2 emissions from its mills, cutting food sector waste by utilising human food co-products and developing new technology that helps dairy farmers lower the level of methane emissions from cows.

The refinancing package is secured against the value of the company’s sales ledger, stock, property, and plant and machinery.

Established in 1992, BOCM PAULS is based in Ipswich, Suffolk, and operates 11 mills and seven blending plants across the UK.

Lloyds TSB Commercial Finance is part of Lloyds Banking Group and provides businesses with asset-backed finance for expansion, growth and management buy-outs.