County Durham manufacturer Ebac has secured a £4m finance deal to fuel expansion plans.

The Durham business, which makes washing machines, dehumidifiers and water coolers, has received the facility from Cynergy Business Finance (CBF), which it will use to accelerate sustainability initiatives. Ebac was introduced to Cynergy Business Finance by its financial advisor, TSF. The £4m flexible facility comprises a £2.5m invoice discounting facility and £1.5m inventory financing.

The finance will play a pivotal role in the company’s expansion of its new product ranges, including the development and introduction of its heat pumps. The company revealed in the summer how it has launched a new range of products designed to help tackle the climate change agenda, including domestic heat pumps, suitable for the average Ƶ home, and new dehumidification with heat recovery (DHR) systems which use existing technology in a new and innovative way.

The systems are placed in lofts to counter moisture-related issues like dampness and condensation. The new system uses advanced AI (artificial intelligence), and minimises energy consumption by only running when required, unlike other systems that run continuously even when excess moisture has been removed.

John Elliott, chairman at Ebac Ltd, said: “I am delighted that Cynergy Business Finance has recognised the huge potential of our new products. Our innovative design teams spent time during the pandemic designing two products that address new legislation designed to make homes carbon neutral and free of damp.

“Both the heat pumps and DHR system represent the future for the Ebac business and our forward production and financial planning are based around bringing them to the market quickly in the second half of 2023. We were badly hit by the pandemic as sales fell and components were held up in the supply chain crunch, but we decided to push ahead with the R&D investment, the result is that, with CBF’s support, we are ready for the market and mass production will start soon.”

Dan Burton, executive director at Cynergy Business Finance, said: “We are thrilled to partner with Ebac to support them on this next stage in their growth journey. John and the team’s longstanding reputation and dedication to innovation stands Ebac well in this next stage, particularly given the team’s focus on sustainable practices and innovations. We look forward to witnessing their continued success and impact on the British manufacturing sector.”

Alan Anderson, director at TSF finance, added: “The outstanding growth and profound action by Ebac throughout its long history is testament to the strength of its team. Witnessing the strong relationship between Ebac’s visionary approach and CBF’s financial expertise has been truly inspiring. This collaboration is a testament to what can be achieved when visionary leadership meets strategic financial support, and the opportunities this can unlock in-turn.”