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Nextbase, the world's leading manufacturer and developer of dash cams, has secured a £16m invoice discounting facility from Secure Trust Bank Commercial Finance, designed to support domestic and international growth at the Surrey-based business.
The facility will also supplement the firm's working capital cycle, and marks the first time external funding has been used by Nextbase's growth investor Sandton Capital Partners, a London and New York based private equity fund.
In the year to March 2020, the business had revenues of more than £60m and an 85 per cent market share in the UK, following a period of consistent turnover growth of around 40 per cent per annum.
Founded in in 1999, the firm now employs 70 people across its head office in Surrey and technical support centre in Caerphilly, South Wales. In addition to domestic expansion in the last 22 years, the firm has also successfully targeted international growth across Europe and North America, with products already sold in more than 20 countries.
Nextbase has most recently launched the 622GW, a 4K dash cam that records at 120 frames per second and offers Bluetooth and Alexa connectivity, as well as digital stabilisation technology. The product has been well received in the UK, with the 622GW receiving awards from T3, AutoExpress, Good Housekeeping and a Which? Best Buy.
Secure Trust Bank Commercial Finance provides a full suite of asset-based lending options including invoice financing, working capital and inventory financing. Currently the commercial finance arm of the listed bank has in excess £500m of facilities agreed to support growing businesses across the UK.
Andy Foster, Non-Exec Director at Nextbase and Senior Advisor at growth investor Sandton Capital Partners, explains: "Nextbase continues to develop at an impressive rate both in the UK and in the less mature US and European markets. The facility provided by Secure Trust Bank will support Nextbase in bringing its innovative products to new and existing markets as it continues to expand into these key growth areas and beyond.
"For Sandton, this is the first time we have partnered with an external debt provider to fund a portfolio company so it was crucial to find the right partner. We selected Secure Trust as they presented a high-quality commercial solution, understood the business, deploying a robust and rapid credit approval process."
Tony Young, Regional Sales Director at Secure Trust Bank Commercial Finance, said: "Nextbase is a fantastic example of a thriving UK technology company and we are pleased to be able to support them with this facility.
"We worked closely with the management team and Sandton Capital to understand the business, its opportunities and challenges, and ultimately create a flexible facility that will support with its ongoing international growth. We look forward to continuing to work closely with the Nextbase team as the business grows."