2010 a Record Year for New Deals and 2011 shows every prospect of the same

Jan. 4, 2011 - PRLog -- EXPORT – HIGH LEVEL         
Luxury clothing wholesale – Northeast             £900k turnover
A client was doing the large majority of its business outside of the UK.  It was growing strongly and therefore suffering from a strain on cashflow.  An invoice facility was sourced from an independent factor to fund all of the company’s overseas sales and was complemented by language support and the ability for its debtors to pay in overseas local bank accounts.  The client attained the ability to not only survive their shortfall but obtained sufficient funding to further increase their own production capability.  The incumbent bank relationship was maintained.


RESTRICTIONS FROM CURRENT FACTOR
Healthcare sector – Northwest               £500k turnover

This client was having considerable difficulty with their existing factor who was restricting on credit limits and concentration limits on their customers; this having a knock-on effect on the funding that was made available.  An alternative independent factor was sourced providing a facility with no credit limit restrictions on the majority of the customers and had no concentration restriction.  This released the necessary funding that the client needed.  


CID FACILITY – SMALL CLIENT
Motor parts - Cumbria                   £475k turnover

This company supply motor parts to a large number of active customers.  Given the small size of the company and combined with only moderate financial performance the bank factor was unable to provide an invoice discounting facility.  A factoring facility was not a viable option given the high number of customers and the associated costs that would have been involved.  A confidential invoice discounting facility was sourced from an independent, providing the necessary funding the client needed.  


NEW START COMPANY
Supply of pet products – Yorkshire             £150k turnover

This company had sought facilities from several bank factors but were unable to obtain any facilities due primarily to being a new start company but also because of having no formalised business plan and any projections in place.   A facility was sourced from an independent factor which had a specialist ‘new start’ offering.  The client was able to start trading with the confidence of having sufficient working capital and of having the support of a factor which would handle all of the credit control and collections.  Credit protection was also incorporated which indemnified against any early bad debts which could otherwise damage its future financial viability.  

HMRC ARREARS / BANK MANAGE AWAY
Haulage company – Cumbria               £4.5m turnover

The company had been trading for many years but had suffered from a drop in profit margin, a fall in sales, and some damaging bad debts.  This had the knock-on effect of impacting on working capital, with creditors being extended and Vat and Paye arrears being built up.  The bank factor desired to decrease the funding available for their invoice finance facility at a time when more was actually needed.  An independent factor was sourced which paid off the bank factor and also managed to increase the funding available.  The bank relationship was maintained despite having been strained after the bank factor’s need to decrease funding.


CASHFLOW SHORTAGE
Engineering company – North Yorkshire          £12m turnover

The company had moved its factory having wished to take advantage of low commercial property values and the desire to own their own freehold.  In doing so significant relocation costs were borne.  A mortgage had been obtained on the new building but relocation costs had proven to be significant and outwith the cash resources of the company.  A CID facility was obtained on a reasonably short term contract as a bridging mechanism but this was retained ongoing as it provided the company with the working capital to further take advantage of the increased capacity of the new factory.

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About AJ Martin & Co. Ltd Factoring and Finance Brokers

We are Independent Commercial Finance Brokers - with access to the whole market and putting finance packages together comprising Invoice Finance, Factoring, Loans, Grants etc.

website www.factoringandfinance.co.uk