Case Type – Account Receivables Finance

Understanding the Client – The client is a fast-growing care home recruitment company. Trading since February 2019 they have quickly developed from start up to c.£600,000 in revenue. Although only recently established the company was nominated for the award of Social Care Premier Supplier 2021 and was one of eight finalists. Recent new contracts provide the potential to increase sales to c.£1,000,000 p.a.

Project – The company is required to make payroll on a weekly basis, with clients invoiced on a 30-day basis. Debtor payments are often outstanding for considerably longer periods. This funding gap will increase as the business grows and will likely become a serious hindrance to the company’s growth.

Challenge – To find an account receivables finance facility that will meet the clients key requirements:
● Provide the finance required to fund business development.
● Provide regular limit reviews to enable the facility to grow with the company’s turnover,
● Ensure complete confidentiality
● Ensure the customer retains full control of the debtor book, as well as the invoices submitted for finance

Strategy
● An in-depth analysis of the available options available from a range of lenders
● A price comparison of the various products at varying levels of usage
● Provision of a spreadsheet enabling the customer to calculate finance costs in advance of drawdowns

Lender: Bibby Financial Services

Facility: £150,000 Account Receivables Finance

Interest Fee: 3.25%

Service Fee: 1.5%