Business Loans Case Study
Sheffield-based BetterYou was set up five years ago to capitalise on a gap in the market for innovative health supplements, including transdermal magnesium products and sublingual vitamin sprays, for modern customers with busy lifestyles.
The company, which supplies stores including Boots and Holland & Barrett, has seen year-on-year growth of more than 40 per cent and has doubled staff numbers in the last year.
In order to consolidate its success, BetterYou’s founder Andy Thomas and CEO Robin Whitbread turned to Finance Yorkshire.
Robin said: “We are a business that is growing fast but for any expanding company one of the first areas that tends to come under pressure is cashflow.
“Bringing new products to market is also an expensive business and we needed to ensure we had the resources and capacity to do so.”
Said Robin: “The Finance Yorkshire funding meant we were able to increase stock levels and therefore improve product availability.
“The loan helped us increase our range which now includes an additional four product lines, including a vitamin D spray for pregnant women, which was one of the first to market in the world.
“The funding also enabled us to undertake a clinical trial with the University of Cardiff. The study demonstrated that our transdermal magnesium products – which are sprayed directly onto the skin – are more absorbent and effective than products which are administered orally.
“We are also using the loan to enhance our communications and marketing strategy by going to tradeshows to talk directly to customers and those in the industry.”
The Investment Rationale
Finance Yorkshire Portfolio Manager David Ward said: “Like many companies across the Yorkshire and Humber region, BetterYou is growing quickly and needed to raise additional working capital to maintain that momentum. We’re pleased to have been able to support them as they build on their impressive growth.”
David added: “New product development is the lifeblood of businesses like BetterYou which already exports to 15 countries and is now looking to extend its distribution further, both internationally and across the UK.”
Note: this case study is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire