Arbuthnot Commercial Asset Based Lending (ACABL) has provided £3m in funding to Coconut Merchant, an ethical food wholesaler.
The refinancing package includes a revolving invoice discounting facility and a term loan, and will enable the firm to expand its operations across Europe.
Coconut Merchant, which supports farmers and communities in Sri Lanka, Thailand, Vietnam, the Philippines and Indonesia, specialises in coconut-based products such as water, oils and butter.
The funding will also allow the firm to diversify its product range, following a surge in consumer demand. Coconut Merchant is already the biggest coconut oil seller in Europe on Amazon.
Shan Vignes, managing director, Coconut Merchant, said: “I have built an excellent relationship with the team at Arbuthnot Commercial ABL, having worked with them in the past, it is good to have the opportunity to continue the journey we embarked on with them several years ago.
“They have built a strong understanding of our business needs over the years, which enabled them to put together a larger facility in line with our requirements, underpinned by a high level of personal service. At Coconut Merchant, supporting farmers is at the heart of what we do. Ultimately, the funding from Arbuthnot enables us to continue our work by helping more farmers and farmers’ cooperatives and, by extension, their supply chains, and local economies.”
Andrew Rutherford, commercial director, Arbuthnot Commercial Asset Based Lending, added: “It is wonderful to be working with Coconut Merchant again.
“The business enjoys significant brand loyalty, which resulted in increasing demand from its customer base for a wide range of organic, natural foods. Importantly, this funding will not only meet Coconut Merchant’s working capital needs as it continues to scale but will also have a ripple effect in creating new opportunities for the farmers and the local communities they support.”
