Rapid Expansion of Business

A potential client was referred to us by an existing Churchbridge customer. Their turnover was just over 300,000 but due to winning some projects with 3 large blue chip clients they were expecting this to increase dramatically over the next 12 months to 3,000,000.

 

Some of their work was providing marketing material and also marketing staff so they incurred a lot of upfront costs but were having to wait 30 days for payment of their invoices which they could only issue upon completion of a month long project so they incurred costs long before the invoice was even issued.

 

They faced many problems when trying to find a factor including wariness of their large projected increase of business, concentration levels of the debtors and potential future seasonal peaks in their business.

 

Churchbridge looked at the business from our usual common sense approach and were able to offer a 250,000 facility on a non-recourse basis with a 90% advance of funds.  The client was able to continue to look after their existing debtors while Churchbridge factored their 3 large new clients where they couldn’t fund the work themselves.

 

The client considered a number of offers and decided upon Churchbridge as we could give them the flexibility they required as their business grew and changed over the next year. They were impressed by Churchbridge’s personal service and propensity to get things done.

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Business Cash Advance

ABC Eyecare is an independent optician based in Leeds. Established in 1999 by qualified Optometrist Steve, the practice set out to offer their clients something different to other high street opticians by providing additional specialisms in laser eye surgery, paediatric optometry, and Glaucoma detection.

Business is very strong, showing year on year growth with an expanding, loyal customer base.

Steve was looking to purchase new stock, refurbish his practice and upgrade the consulting rooms, development which required the financial support of a Business Cash Advance. This advance in funding enabled Steve to reposition his retail offer, and begin to stock high-end ranges of bespoke, handmade eyewear.

Steve explains, “l wanted access to short term cash that wasn’t bank funded. I’m a big fan of alternative funding so when my accountant suggested a Business Cash Advance, I got in touch with Churchbridge. The team were very helpful, easy to deal with and there was no lengthy admin to do. The cash came through very quickly and I was able to restock and make the interior changes all in one go, in a very short period of time.”

“The funding has allowed me to really change the face of the practice, from the way it looks to the services and eyewear I provide, creating a very distinctive offer. It’s put me ahead of the game and the business is really benefiting. Plus, there isn’t the stress of fixed repayments because pay back is based on my credit card takings, so it doesn’t hurt if we only have an ‘okay’ month.”

What could Churchbridge and a Business Cash Advance do for your business?

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New Facility

Our customer is a specialist manufacturer of glass. The business has supplied a wide range of glass products to the commercial construction industry since 1995.

They have been faced with several challenges which contributed to cash flow struggles. Late invoice payments from clients meant that they were often concerned about meeting monthly commitments such as PAYE taxes and payments for machinery, which caused unnecessary pressure.

The business had historically been funded by an overdraft, along with contributions from the Company Director. The Director decided to look for alternative forms of funding as a more viable, long-term solution that would be less restrictive.

After considering the day-to-day challenges the business faced, the director sought guidance from their accountant who suggested invoice finance as the most appropriate funding solution for them. The director was hesitant at first as she had always believed this to be an expensive way to finance a business. However, further to meeting her Churchbridge Business Finance expert, she was pleased to realise that the advantages of this type of funding far outweighed any initial price reservations. One of the main benefits was the understanding that the business would receive money from its invoices within 24 hours of them being raised.

Churchbridge provided a £250,000 invoice discounting facility and although the team at the company doesn’t always use the maximum available each month, they know additional funding support is there when required.

The director and the team have now been using invoice discounting for a number of years and are well and truly converted to this form of finance. They said: “I wouldn’t hesitate to recommend it to any company looking for cashflow support. It has been instrumental in helping the business move forward and I don’t know how we managed before.” Not only do they no longer have the constant stress of not knowing how they are going to meet their monthly commitments, but they are now able to invest in new machinery to make efficiencies within the business without having to find extra funding.

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Asset refinance

We were introduced to a long-established textile manufacturing business that due to the changing nature of its market had struggled. A package was being put together to fund a turnaround and as part of that we were asked to refinance some specialist machinery.
Having met with the management team and discussed the whole picture we were able to structure an offer.
Working in conjunction we the senior debt provider, debt funder and specialist short term stock funder we provided a £40k refinance facility on assets with a security value of approx £20k.

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Supply chain finance

Client:
A Spain-based manufacturer of bio-diesel fuel. This innovative company takes recycled vegetable oil and converts it to clean-burning bio-diesel which is used as an additive in refined products throughout Europe.

Situation:
The Company’s recent expansion of its plant capacity to meet growing customer demand resulted in cash flow constraints.

Churchbridge Solution:
€4.0 million in supplier credit and factoring facilities enhanced the Company’s cash flow by providing extended payment terms to vendors and access to working capital to support its growth strategy.

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Factoring isn’t scary!

Churchbridge Business Finance went to see an engineering business that supplied specialist car parts with sales of just over £1m. They were recommended to us by their accountant but the owner was very reluctant to talk to us as he ‘didn’t like factoring’.

Notable points:

It was a really good business, very proud of their products and service, profitable and growing.
He had just missed a £200,000 order because he did not have the cash to pay the Chinese supplier upfront.
He had just suffered a bad debt of £5,000.
His largest customer represented nearly half his business.
He did all the credit control himself (this involved a disgruntled call to customers after a couple of months of them not paying).
He never did credit searches on new or existing customers.
I asked him why he didn’t like factoring and he told me because it was too expensive and once you used it you became ‘locked in’.

When I told him that factoring could save him money he looked extremely doubtful.

This is Funding for Growth

Firstly, we started on the missed order. His net profit margin was high, over 25% on the order. So he was not happy he missed it. We told him that Invoice Factoring would costs him around 1.3% (£13,000) of his annual sales turnover all in. He could have fulfilled the order if he’d had the funds:

Order: £200,000

Profit: £40,000

Factoring Costs (1.3%): £2,600

Profit after costs: £37,400

He still looked doubtful.

We then talked about credit control. The owner envisaged that as a growing business, they would have to recruit someone to handle credit control. We told him that factoring included professional and regular credit control, so he wouldn’t have to employ another person:

Sales Turnover: £1,000,000

Factoring Costs: £13,000

Credit Controller Cost: £20,000

Saving: £7,000

The factoring facility also included as many free credit checks as he wanted, so he could credit check all of his customers.

We then discussed credit insurance. It would cost him 0.5% (£5,000) of his annual sales turnover to insure his company from bad debts. He could have claimed for his bad debt but more importantly if his one big customer failed then his business would fail. Did he want to risk that?

He summarised our conversation:
“So, for £13,000 a year, you provide finance for the business so I can grow sales, plus credit control and free credit checks, and for another £5,000 you can insure me against bad debt…well it doesn’t feel like much of decision then really”.

We offered a trial for three months and if it didn’t work out then we would shake hands and agree to part. That was three years ago and they are still a happy client, albeit a larger one now.

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Steel Fabricator £200k facility

Churchbridge Business Finance has funded another owner-managed business in South Yorkshire with a new invoice finance facility:

Steel Fabricator
£200k confidential CHOCS facility
Replace existing overdraft / increase cashflow
One of Churchbridge Business Finance’s core values is to deliver flexible invoice finance solutions which grow in line with the business of the client.

This is why we were able to specifically tailor this invoice finance facility to the company’s requirements, which were to clear an existing overdraft and provide money upfront for invoices to help get cashflow moving in the right direction.

Welcome aboard to our newest client!

What is CHOCS?

CHOCS, or “Client Handles Own Collections Service”, is a type of invoice factoring facility which allows a client to handle their own debt-chasing work, meaning their credit control team function are able to act as normal to chase payments.

This type of facility suits companies who are established and have a well-oiled credit control team.

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Export Finance

Background

A company which produces disinfectants to fight animal diseases sought expansion into lucrative new markets in the far east.
It’s existing lenders were unwilling to trade with these markets due to the perceived risk being too high.

Solution

Churchbridge was approached about the possibility of funding goods to these new markets. We established the ideal partner to assist the business.
The finance company purchased the product directly from the supplier; the client processed the order and invoiced the end debtor, the debtor then pays the finance company directly.
To do this we work alongside the company’s existing bank by carving out the security on specific receivables.
Outcome

Going forward Churchbridge is continuing to fund the company’s global expansion, most recently into the Middle East.

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Haulage company required a better product

Company Overview

A privately owned, family operated haulage business. The company was established over 10 years ago and John Reid himself has over 35 years experience in the haulage industry.

The company has a varied fleet of 31 vehicles operating from 3.5 tonne curtain sided vans right up to a 44 tonne articulated lorry.

Facility Provided

Confidential invoice discounting (C.I.D). Previously provided by a high street bank, however our client was unhappy with their poor service levels.

What made you move your facility to Churchbridge?

I got a phone call from Churchbridge Business Finance and I welcomed their zero-pressure approach. They seemed genuinely interested in helping our business as a whole.

What are Churchbridge’s three main qualities?

Ease of use. Migrating our discounting facility from the high street bank via Churchbridge Business Finance was extremely easy. The current system is also very easy to use. Plus, we have direct access to a Relationship Manager whose job it is to ensure we’re happy!

Excellent Service Levels. The service levels at Churchbridge Business Finance are second-to-none and we’re really pleased with the ongoing relationship we share with them. It’s great to know that I can just pick up a phone and speak to someone in an instant.

What has surprised you most about Churchbridge?

Being extremely proactive. When our sales increase so do our needs, and Churchbridge Business Finance is extremely proactive in seeing these trends and adjusting our requirements accordingly. They really do have a good understanding of business and their pro-activity makes the facility we have with them really flexible.

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Invoice Finance – Temporary Recruitment Agency

  • Temporary Recruitment Agency
  • £50k Invoice Factoring facility
  • Found Churchbridge Business Finance by searching “factoring companies for small businesses” on Google.

The firm, based in Lancashire, required a facility that would help fund its unpaid invoices upfront, getting the cash they’ve already earned into their account quickly. With an Invoice Factoring facility from Churchbridge, they now benefit from being able to unlock up to 90% of monies they are owed within 24 hours of issuing an invoice!

The company can now focus more of its time on growing sales and increasing the profitability of the business.

Get your finances in order for winter

Now more than ever, companies across the UK have a myriad of alternative funding solutions available to them such as peer-to-peer lending and invoice finance facilities.

Invoice finance is one such solution which works especially well for businesses that issue invoices, as it essentially speeds up the process of getting funds into a business through the unlocking of cash that gets tied up in unpaid invoices.

If you’d like to find out more about the alternative invoice finance facilities we offer, why not give Churchbridge Business Finance a ring today on 0121 769 2659.

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