Craft beer importer and distributor, Cave Direct, has secured an invoice discounting facility with a £2.5m funding limit from asset-based lending (ABL) specialists, Cynergy Business Finance (CBF).

Established in 1979, Cave Direct was founded by Bryan Gilhespy, who was then joined by his son, Colin Gilhespy, and daughter, Louise Smale. Originally a small wine importing business, Cave Direct expanded its offering to European beers.

Located in a two-unit 30,000 sq ft premises in Kent, with satellite distribution centres in Manchester and Bristol, it distributes to over 3,000 pubs, bars, and retailers across the UK, and is now the only national direct-delivery beer wholesaler.

Cave Direct completed a management buyout (MBO) in 2023 that saw the appointment of a new board of directors – including Neil Kitching as managing director, Laurence Smale as sales and marketing director, and Micheal Rochester as operations director – that would secure its long-term future and continuity as a family-owned and run business. Colin Gilhespy and Louise Smale remain in the company as chairman of the board and director respectively.

Following the MBO, Cave Direct sought new funding to support its existing operations and allow for investment in future growth initiatives. The facility from CBF will help Cave Direct continue to expand its operations and push forward with its long-term business and growth strategies, as they begin to hand over leadership to the next generation.

Colin Gilhespy said: “Cave Direct has been such a huge part of mine and Louise’s lives, since our father started the business over 40 years ago. Cave Direct has established itself as a UK leader in the importing and distribution of craft beers from around Europe and beyond, and it was imperative that we are able to continue growing whilst remaining an independent, family-run business.

“The team at CBF really took the time to understand our business and priorities, and this new funding will give us the capital we need to take the business into its next chapter. We’re confident that Cave Direct will continue its legacy as we hand over leadership to the next generation.”

Jeremy Glaze, corporate sales associate at Cynergy Business Finance, added: “Cave Direct is a great example of a traditional, UK family-run business that has made a mark on its industry, with huge potential for further growth. I’m pleased that we have been able to provide them with a new facility which will enable them to move forward with their ambitious plans for the future and secure their legacy as a UK leader in this space. I look forward to seeing Cave Direct go from strength to strength.”