Men’s clothing distributor M2C2 secures £1m from IGF to support growth

Asset backed lending was the ideal solution for clothing manufacturer Viyella-online when it needed funding to grow

M2C2 Group Ltd, the trading name and trademark of, which distributes men’s shirts and knitwear to 500 local independent menswear retailers on high streets across the UK and Europe, has secured £1m of funding from Independent Growth Finance (IGF), the independent asset based lender (ABL).

The nature of the M2C2 business meant that it needed a funder which understood the seasonal nature of its business and long lead times. These presented the company with financial challenges in that for M2C2 a business cycle can be up to 18 months. Over that period of time this, M2C2 covers everything from designing prototype examples to agreeing on a sample collection, then presenting to the collection to its sales force, showcasing to buyers six to eight months in advance and, finally, distributing to retailers.

M2C2 therefore sought a finance solution supporting its growth forecast, through the continued supply and development of their customer base of 500 small to medium independent high street retailers. It needed an arrangement that was flexible to meet the unique needs of a clothing distributor. To meet these needs, IGF provided M2C2 with £0.7m invoice discounting and, as part of the wider asset-based lending package, £0.3m of inventory finance.

Neal Dawson, director of M2C2, said: “We were not only looking for a funder who could provide additional cash to support our growth aspirations, but we also had an expectation around service levels and support. During the initial meeting with IGF, it was prominent that the team garnered a synergy, separating them from other funders.”

Paul Edmeades, ABL director at IGF, said: “We are delighted to welcome M2C2 as a client. As we do with all our clients, we took time to understand M2C2’s requirements to provide a bespoke funding solution that fits the needs of their business. An ABL package is useful to a business like M2C2, which has seasonal trading fluctuations or carries high stock value, to cover customer needs.”

Asset-Based Lending is a form of asset-based finance that uses assets on a borrower’s balance sheet as security against lending. Assets can include physical assets, such as debtors, stock, equipment, machinery and property and can also include assets which could be considered intangible, such as Intellectual Property.


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Stephanie Spicer

Stephanie Spicer is an editor at Bonhill Group

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