Latest UK Factoring Case Studies

Below are just a few of the factoring deals we have set up recently:

Recourse Factoring and Payroll - Turnover: £750,000

A new start recruitment company supplying nursing staff and teachers to private hospitals and schools within the Greater London district, needed funding to bridge the gap between weekly payments to temporary staff and monthly sales receipts from customers. Sterling Capital Reserve was able to put them in touch with a specialist factoring/discounting company that provides funding and administrative services to the recruitment industry. They now have a healthy cash flow, and full back-office support with the payroll function, freeing up valuable management time.

Stock Finance and Factoring - Turnover: £400k

Established for just 12 months, our client had quickly built the business up to achieve turnover of £400k during the first year. They had no bank facilities, but wanted a working capital facility in place that would grow in line with sales. Factoring was the obvious choice.

We arranged a factoring facility with an independent factoring company, and were also able to put a small stock finance facility in place. The stock finance facility is particularly helpful, since the goods are imported, and our client typically has to pay suppliers up front, with delivery some 4 weeks later. Our client can now concentrate on growing the business without the headache of chasing debts or worrying about cash shortfalls.

Confidential Invoice Discounting - Turnover: £800k

This London based business had a couple of tough years of trading, but was forecasting a return to profit, and required an invoice discounting facility. They were particularly interested in the confidential aspect of a facility, however their financial position meant that the majority of discounters turned them down as unsuitable, and could only offer factoring. Here at Sterling Capital Reserve we deal with independent factoring companies who are flexible in their approach and tailor facilities to meet the needs of individual clients. We put them in touch with a discounting company that took time to understand the business. The process took a little longer than usual, but the client agrees it was certainly well worth the wait.

Recourse Factoring - Turnover: £600k

Established around 18 months, our client was experiencing a period of rapid growth, and had recently taken on several new haulage contracts to Europe and the US. Their customers were not bad payers, but they wanted assistance with collections, and a boost to cashflow. Factoring provided the solution to all of their requirements. Debt turn has improved, and they no longer struggle for working capital.

Factoring - Turnover: £150k

A sole trader, operating an established private hire car firm, with a mix of his own vehicles and freelance owner/drivers, approached Sterling Capital Reserve for help when his own bank was unable to provide a working capital facility. He wanted to expand the business, but cash flow was poor, due to the amount of cash tied up in his account customers. Factoring was the solution. Sterling Capital was quickly able to arrange a factoring facility, with cash being made available to our client within 24 hours of invoices being received by the Factor.

Confidential Invoice Discounting - Turnover: £1m

This family run print finishing company needed funding to expand the business. Their bank was unwilling to increase their overdraft facility, and recommended invoice discounting (and their own discounting company) as an alternative. Despite the long standing banking relationship with the client, and the excellent administrative systems in place, the bank-owned factor lacked the flexibility to structure a deal for them. The bank then recommended that they contact Sterling Capital Reserve for assistance. We put them in touch with an independent factoring company, and a facility was quickly arranged to the satisfaction of both parties.

Factoring - Turnover: £100k

Based in London, our client had been making hats and exporting them around the world for over 20 years. They had won some significant new orders, and were outsourcing work in order to meet the increased demand. They needed to generate extra cash to enable them to pay the outworkers. They had no banking facility in place, and felt that using their sales ledger to generate funding would be the most flexible way to grow the business. They already had offers on the table from a couple of factoring companies, but were seeking a better deal. This is where Sterling Capital Reserve was able to help. We arranged a facility with an independent factoring company that specialises in the needs of the smaller business, and was able to offer an excellent and personalised service at a more competitive rate.

Factoring - Turnover: £800k

Our client, based in Buckinghamshire, sells mobile telephones and airtime to over 200 customers. When they approached Sterling Capital Reserve they already had a factoring facility in place, but were unhappy with the confusing paperwork and management information provided. Their bank recommended their in-house factoring company; however, they proved rather inflexible, and were unable to handle the type of debt and level of work involved. Faced with a vast selection of alternative factoring companies, and unsure where to turn, a business contact recommended they try Sterling. We put them in touch with a couple of factoring companies, who we knew could handle more 'difficult' types of business. They took the time to understand the client's business and were able to structure a deal accordingly.

The Result: the account runs well, and both client and Factor are happy with the facility and the relationship.

Confidential Invoice Discounting - Turnover: £3.5m

Based in Leicestershire, this manufacturer of cardboard cartons was established in the late 1980's, providing a high quality product to a blue chip debtor base. More recently, the company has been through a re-organisation in order to reduce costs and streamline operations. Having operated a confidential invoice discounting facility for a number of years, their relationship with the discounting company had not been without its problems. The discounting company had undergone a couple of changes of ownership, and there had been frequent changes in the members of staff handling their account. The final straw, however, came when the discounting company tried to impose a move to a factoring facility. Unhappy at the prospect of changing to factoring, our client contacted us to find an alternative invoice discounting facility. They faced a long notice period to terminate their existing facility, but the discounter that we introduced was extremely patient, and helped to make the final transfer between the two companies as smooth as possible.

Disclosed Invoice Discounting - Turnover: £1.2m

A Derbyshire plant hire business approached us for help when they needed a facility arranged quickly. They had been factoring for a number of years, but were desperate to find a new factoring company due to poor service levels. They were in the process of transferring to another company when the incoming factor withdrew from the deal at the last moment. With their existing facility due to terminate, and no replacement lined up, they needed Sterling's help to arrange an immediate alternative and to ensure continuity of cash flow. We introduced an independent factoring company who were flexible enough to tailor a deal specifically to the needs of our client whilst working to a very tight deadline. Within a week of our initial contact, the client had their new funding facility in place.

Confidential Invoice Discounting - Turnover: £1.1 million

Established as a partnership over 10 years ago, this road freight transport company became a limited company only 12 months ago. Looking to improve their cashflow, they were interested in a confidential invoice discounting facility, and had already had meetings with 6 factoring and discounting companies before approaching Sterling Capital Reserve. Despite having offers on the table, they did not feel comfortable to go ahead with any of the companies they had already dealt with. They wanted a more personal approach, and were looking for a company to work in partnership with them to help them achieve continued growth. They wanted a factoring and discounting company that could offer that little bit more in terms of service. We arranged for them to meet with a well-respected independent company who fitted the bill perfectly. Their representative immediately put the client at ease. Every aspect of the facility was explained in great detail, and all the costs were highlighted (so there would be no hidden extras). The client was delighted, and a week later they received their first payment from the discounting facility.

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