Midlands based business, Advanced Pipeline Supplies, has revolutionised its funding by replacing its existing Factoring facility with the new advanced online Invoice Discounting solution.
Established in October 2005, the company which specialises in the distribution of industrial pipework, has grown rapidly and it is anticipated that turnover should reach £400K by the end of 2007. Since conception, Managing Director Stuart Hubbard, has utilised factoring to fund the business to smooth over cashflow peaks and troughs.
The factoring facility used initially, worked well to bridge the gap between invoicing clients and receiving payment in, allowing the business to have the cash available to continue to buy in stock and fulfill new orders. This facility also provided sales ledger management and credit control.
As the company grew, the need for a full factoring facility declined. Hilton-Baird contacted Stuart Hubbard and, after discussing his business, advised that a better solution could be found. Stuart comments “Hilton-Baird contacted me at an opportune moment as we were looking to increase the level of funding available to assist with our growth as well as reducing the cost of the facility.”
Hilton-Baird proposed that a new solution from an independent funding provider could be the answer as Advanced Pipeline Supplies had good systems in place which meant that the online Invoice Discounting facility would work well. In addition, Advanced Pipeline Supplies wanted to regain control of its ledger, keeping all credit control in house and move to an invoice discounting facility to reduce costs and gain confidentiality. Stuart Hubbard explains “We were keen to demonstrate our progression and thought that moving to an invoice discounting facility would assist with this. We were introduced to the recommended funder and liked their approach. The Sales Director who visited us, explained how the facility would work and we are very impressed with the capabilities of the online system.” He adds “Having run with a factoring facility previously, we were aware of the advantages of this type of funding but the online facility gives us many more benefits with no day to day administrative annoyances. Their system is linked to ours so we don’t have to produce the schedules or reporting that used to take so much time. In addition, as our systems are reconciled on a daily basis, we have an increased level of funding available.”
The funder was not known to Advanced Pipeline Supplies but Hilton-Baird Financial Solutions was an advocate of their new offering and their approach, providing Stuart Hubbard with peace of mind before going forward with the agreement.
Advanced Pipeline Supplies has gone from strength to strength and, with additional funding available and reduced administrative hassles, Stuart Hubbard is confident he has everything in place to achieve his ambitious growth plans for the business over the coming years.