WM Coulthard repays six-figure advanced payment guarantee loan
Northumberland-based company WM Coulthard has fully repaid an
advanced payment guarantee loan from the Tees Valley Catalyst Fund
managed by FW Capital. The investment allowed the company to
successfully bid on three contracts worth more than £2.2
Founded in 1888, WM Coulthard designs and manufactures bespoke
industrial lubrication systems for a variety of clients.
“Thanks to FW Capital we were able to secure a number of high
profile contracts,” said WM Coulthard’s Managing Director Eric
Dodd. “The boost given by the Tees Valley Catalyst Fund loan helped
us win these contracts, which were for leading international
customers supplying rotary equipment to the oil and gas industry.
This has safeguarded a number of jobs in 2015/2016.”
“WM Coulthard is a well-established company with ambitious
growth plans,” said Nicky Atkinson, the FW Capital Investment
Executive who structured the deal. “They had a great business plan
and successfully tendered for three substantial contracts with our
Working together for the North East
The £10million Tees Valley Catalyst Fund, managed by FW Capital,
offers short term investments to North East businesses to fund
warranty bonds, performance bonds and advanced payment guarantees.
Loans are offered between £100,000 and £2million.
The Tees Valley Catalyst Fund was conceived by Tees Valley
Combined Authority and the Tees Valley Local Enterprise Partnership
and is backed by the Regional Growth Fund. In October 2014
the fund was widened to businesses across the North East and parts
of North Yorkshire.
WM Coulthard was introduced to FW Capital by Barclays bank.
“It’s great to see an already established business continue to
develop and grow in their specialist market,” added Karen Gant from
Barclays. “This structure means that the company is well placed to
maximise opportunities in the sector and illustrates our approach
of collaborating with other local funders in order to provide
support for businesses in the area.”
“We often work closely with other finance providers,” added
Atkinson. “There is a strong business and finance community here in
the North East working together to support local companies. The
Tees Valley Catalyst Fund has unlocked over a hundred million
pounds of contracts by working with other funders.
What is an advanced payment guarantee?
When companies negotiate an advance payment on a new contract, the
customer may require an advance payment guarantee. The guarantee
gives the customer confidence that the order will be completed to
their specification. If the order isn’t fulfilled properly they can
claim against the advance payment guarantee. The guarantee is
usually given by the supplier’s bank on behalf of the supplier and
will often require the supplier to provide cash as security. This
can impact working capital available to deliver the contract.
FW Capital is able to provide short term loans through the Tees
Valley Catalyst Fund to ambitious North East businesses looking to
bid on high value contracts where this sort of guarantee,
performance or warranty bonds may be required.