Mohamed Hanslod , CEO: “As we grow, one of the biggest challenges that we face is how to take sure there is sufficient fund to enable us to take in more orders. As with other manufacturing companies, materials have to be paid for in advance, so it would be beneficial for us to find a more long-term, sustainable way to finance the purchasing as the number of orders increases significantly.”
Apart from the funding, the company also hoped to find a more efficient way to manage the procurement of materials from China, which represents the largest supplier base for Bri-Tek. “I admit it is not easy for us to manage this ourselves, since we don’t have any Chinese staff in the company. Getting this solved would make a big difference for our operation too.”
The unique features of the scheme meant that Bri-Tek’s other pain point was also automatically addressed as a result. As part of the scheme’s requirements, the Chinese investor now works at the company. “China is our largest supplier base. The language and cultural barriers were challenging at times for us in the past.” In November 2017, the Chinese investor arrived from Nanjing, and her rich experience in the manufacturing sector has proven highly valuable for Bri-Tek from day one. “Now that the Chinese investor is on board, we have a very direct interface with our supplier, and it has definitely made our lives a whole lot easier!”
After carefully evaluating the benefits of the Tier 1 Entrepreneur visa scheme backed by the UK Home Office, Bri-Tek decided to engage Ying De to raise fund via this innovative option. It was a perfect match with what Bri-Tek was looking for, i.e. a long-term commitment from the investor rather than a short-term fix. Since there is no capital repayment for five years under the scheme, it allows a company to finance its daily operation or future expansion in a much more sustainable manner.
Thanks to the funding, Bri-Tek has been able to achieve its business goals with flying colours. “Last month, we had the biggest sales in the company’s history. We managed a 100% increase in sales compared with last year! Because of the funding that we have in place, we are now able to accept more orders, and that has been absolutely vital for us in achieving the big success that we have had.” After seeing such impressive results, Bri-Tek is now planning for its next round of funding through the Tier 1 Entrepreneur visa scheme.
In terms of the process of the scheme itself, Mohamed considered it to be “relatively simple”, and would have no hesitation in recommending it especially to any company “which have parts of its supply chain in China and is seeking long-term funding as well”.