A Midlands based recruitment service provider established 5 years ago with 25 staff. The business places candidates throughout the FMCG sector, offering clients permanent and interim recruitment services. This client is just one example of many recruitment companies we have been able to help.
The business had recently purchased and relocated to new premises and was now looking to improve its growing reputation by expanding into other career recruitment sectors.
The Challenge – Cash Solution to Allow Time for Negotiations
Since growing at a fairly sustainable rate, the business had started to reach a cashflow impasse. This, however, is not unusual in the recruitment sector but unfortunately, the drag on outstanding invoices for job creation contracts impacts the businesses working capital. The business was faced with a dilemma, either to remain stagnant or to find a way of increasing the outstanding and very slow debtor book invoices.
The BFS Solution
For BFS the solution to this situation was apparent and the need for an invoice discounting facility was obvious from the initial discussions with the directors of the business. The BFS panel of invoice discounting providers were narrowed down to a company that would have a unique fit for this particular sector and organisational requirement.
The chosen invoice discounting provider would maximise the business’ cash flow by releasing and advancing the funds tied up in unpaid invoices, allowing the business to thrive and prosper.
At BFS we clearly understand that many businesses look to invoice discounting because they wish to grow, and as a result, it’s important that we match the right product or service that allows flexibility when it comes to increasing funding levels.
The Recruitment company greatly benefited from the increased flow capital into its overall business plan/forecast, and the feedback we have gained from the directors tells us that taking time to listen and understand the basics of what is required has changed the landscape of what was already a good business, into one that is now a great business.
Invoice Finance for Growing Businesses
In this instance, invoice finance was the perfect business funding option to help counter a cashflow impasse. If your business finds itself in a similar situation, or you want to find out more about the other funding options available, call one of our expert team now on 0800 047 2389.