Flexible finance engineers growth for CSL Engineering in a competitive market

Founded in 1999 in Northamptonshire by entrepreneurial duo John O’Donnell and Mike Robson, CSL Engineering Services has grown from modest beginnings into a trusted supplier of engineering products across the UK. With a combined 70 years of industry experience, the founders built the business on deep product knowledge, strong supplier relationships and a commitment to service. Castor supply remains at the heart of the company’s operations, all available from stock at its UK distribution centre.

Over the years, CSL Engineering Services has expanded its offering, becoming the sole UK distributor for many large international manufacturers. Its products are sold through a network of distributors, with end products ultimately used by major supermarkets and engineering companies nationwide. Operating in a highly competitive market, the company has carved out a reputation for product quality, reliability, and expertise.

However, growth in this sector brings significant financial challenges. The business must hold substantial levels of stock to meet customer demand, yet demand for specific products can change rapidly, sometimes resulting in high stock holdings. At the same time, larger customers often require extended credit terms of up to 90 days, putting pressure on cashflow. Coupled with a cautious trading environment and prolonged decision-making cycles despite strong opportunities, maintaining liquidity has been critical.

John explains, “As a business we must hold stock to meet customer demand and that can be expensive and as demand for different forms of castors changes so quicky it can cause issues with stock holding.  When you combine that with extended credit periods of up to 90 days with larger customers, cashflow can quickly become strained. It’s a cautious market, and while there are plenty of opportunities, decisions are taking longer. You need confidence and flexibility to keep trading strongly.”

Recognising the importance of a flexible funding solution, CSL Engineering partnered with Pulse Finance in the same year the business was formed. Since 1999, Pulse Finance has supported the company with a factoring solution with their current facility delivering £150k of flexible funding available to use as they need.  The funding solution also includes a comprehensive sales ledger management service that collects invoice payments directly from customers.

John reflects on the decision: “We chose to work with Pulse Finance and securing a flexible funding line gave us the breathing room to confidently trade. The facility provides real peace of mind and flexibility. We can continue to bring stock in because we have funds available. It’s also more cost effective for us to use Pulse Finance as an outsourced collections team chasing payment from our customers.”

Beyond the financial support, the partnership has delivered operational benefits. By separating collections from the sales relationship, CSL Engineering can maintain strong customer connections whilst ensuring timely payment of invoices. “It’s a benefit that isn’t obvious at first.  Separating the different parts of our relationship from the customer,” John adds. “We can focus on maintaining a great relationship and continue to sell, while Pulse Finance works with our customers to receive payment.”

The relationship itself has become a cornerstone of the arrangement. “We get on well with Pulse Finance – our client manager really looks after us,” John says. “In fact, if we call in, whoever picks up the phone is happy to help with what we need. They are very personable. We treat our funder the way we would want to be treated – we are very loyal to the partnership we have with Pulse Finance.”

From Pulse Finances’ perspective, the collaboration is equally valued. Siouxsie Ashmore, Head of Operations comments, “We’re proud to be supporting a great business. Our funding solutions give businesses the confidence to trade and grow, and CSL Engineering is a fantastic example of a company using flexible finance to strengthen its position in a competitive market.”

With stable funding in place and a trusted partnership behind them, CSL Engineering is focused firmly on the future. Despite the challenges of stock management, extended credit terms and a cautious business climate, the company has clear aspirations for continued growth. Backed by experience, strong supplier relationships and the financial flexibility to act decisively, CSL Engineering is well positioned to seize opportunities as they arise.