Region: North West
Programme: Coronavirus Business Interruption Loan Scheme
COVID-19 created a number of issues for Hanson Springs. Staff taking leave to self-isolate reduced overall productivity, while a fall in demand hampered cashflow. And delays with payments gave the business much less working capital to work with. As a consequence, it sought financial support via the Coronavirus Business Interruption Loan Scheme (CBILS).
Read what it had to say in this CBILS case study.
British Business Bank: Can you tell us what your organisation does?
Malcolm Hanson, chairman of Hanson Springs: Hanson Springs is a long-established, family-owned manufacturer of metal springs based in north-west England. We work with a variety of industries, including flow control, oil and gas, nuclear, rail and power generation.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply for CBILS support?
COVID-19 caused three main problems for our business. First, a number of staff had to take time off ill or to self-isolate, which had an impact on our productivity and output. Second, our usual sales and cashflow were affected by fluctuations in both market and demand, especially in the oil industry. And third, delays with debtor payments, increased logistical costs, and orders being pushed back meant the business had much less working capital.
How long did the application process take? Did you need any support?
It took two weeks from making the application to the loan being approved. We had support from Close Brothers, who were able to identify the best funding solution for our needs and help us to complete the application smoothly.
As a critical supplier making key components for ventilators and hospital boilers, we’re proud to have provided an integral service during the coronavirus crisis. The CBILS loan allowed us to focus on meeting the demand for these vital products.
Malcolm Hanson, chairman of Hanson Springs
How has the CBILS loan helped your organisation to weather the outbreak? And what might have happened if you hadn’t received it?
When the pandemic began, Hanson Springs was classed as a critical supplier because we provide key components for ventilators and hospital boilers. The CBILS loan allowed us to focus on meeting the demand for these vital products, as well as fulfilling our existing orders and keeping supply chains open. We’re proud to have provided an integral service during this crisis.