As funders have sought to manage their risk in the adverse economic climate, clients have often been left in a position whereby credit limits are tightened to the point that their existing funding facility no longer meets their day-to-day needs.
Despite “bucking the recessionary trend”, Managing Director of Flowfront Ltd, Paul Galloway, found his business in these precarious circumstances at the beginning of the year.
He explained: “Our previous funder capped our facility at too low a level for us to trade efficiently. The advance rate they had previously delivered had fallen to below 50% which stifled our cash flow and limited our ability to trade. It also led to a breakdown in our relationship and our credit rating was being lowered through no fault of our own.”
Buoyed by rail projects and the upcoming London Olympics in 2012, Flowfront – providing labour recruitment to civil engineers – has managed to continue its recent growth despite rising unemployment and the construction sector being hit particularly hard by the recession. As with so many businesses, it relied heavily on a steady flow of cash however, so Paul began his search for a replacement funder that was able to meet his business’ funding requirements.
In addition to undertaking his own research into the invoice finance market, he approached Hilton-Baird Financial Solutions to assist his search for a tailored confidential invoice discounting facility, with debtor protection also fundamental to the search process. He shortlisted five funders in total, but Hilton-Baird’s timing and expertise proved pivotal to his selection process.
“I was extremely impressed with Hilton-Baird’s prompt response to help find the funding we needed,” Paul continued. “The calibre of funder they introduced was outstanding and, although we did our own research into invoice finance providers, we went with Hilton-Baird’s suggestion.
“Our new funder has been much more proactive with us. They get involved and they listen to our needs, which helps to solve any problems and ensures we won’t encounter the same difficulties again.
“They’ve been very helpful – we’ve got a planned growth of 50% over the next 12 months and we wouldn’t have been able to do that without substantial support. Now we’ve got that.
“Although the funder Hilton-Baird introduced wasn’t the cheapest, we felt they were the best through their understanding and level of support – and we’ve been proved right.”
For more information on Flowfront Ltd, please visit www.flowfront.co.uk.