Swift

A leading UK manufacturer of caravans and motorhomes needed financing to support the growth of its static holiday homes business, as well as ongoing R&D.;

Swift Group’s Challenge

The award-winning, family-owned Swift Group is the leading UK manufacturer of both touring caravans and coach-built motorhomes. At the height of its seasonal production, the company makes 60 caravans and 20 motorhomes each day across three UK bases: Mexborough, Hull Docks and Cottingham.

Since 2004, the Swift Group has also produced a range of prestigious holiday homes. As recently as 2010, however, the company only held a 6% share of the holiday homes market. In addition, to preserve its dominance in the caravans market, the Group needed to make significant, ongoing investments in research and development.

To address these challenges, Swift required a partner who could tailor a bespoke, alternative financing solution.

GE Capital’s Strategy

When Swift Group’s then-current financing partners proved too risk-averse, GE Capital used its deep knowledge of the industry to craft a competitive stock financing solution. Ensuring the efficient, cost-effective distribution of Swift Group’s products across its dealer network, the GE Capital facility helped Swift Group dealers to boost their sales by increasing demonstration stock, reducing customer wait times and allowing the dealers to place advance orders with the security of agreed financing.

In addition, by freeing the cash-flow that had been confined to the Swift Group’s inventory, the stock finance facility allowed the company to dedicate substantial funds to research and development.

The Results

Over the last two years, Swift Group has dramatically increased its share of the static holiday homes market: from 6% to 17%. Given the ever-increasing popularity of the “staycation”, the value of this market share should continue to rise each year.

Nick Page, the commercial director for Swift Group, said "Providing adequate stock funding to our dealer networks is a vital cog in the retail chain, enabling dealers to display and therefore sell more of our products."

The GE Capital facility has also enabled Swift Group to hire more employees and develop new technology - continuing the company's founding mission of producing innovative products that are well designed, constructed to the highest standards and provide outstanding value for money. Today, Swift caravans are 13% more aerodynamic, and the company was the first in the industry to launch a social networking website.

As a result of Swift Group’s mission, success and financial stability, the company helps develop the next generation of engineers through its sponsorship of the Formula Student International Camp. Swift Group is also a proud donor to Macmillan Cancer Support UK.