Mr H – Cheadle
- Commercial
- 03/11/2023
Mr H was referred to us via his tax accountant and one of our Strategic Partners.
His business started in 2018, supplying white goods & furnishings to the NHS as well as the hospitality industry. Whilst the business has been growing from strength to strength (albeit naturally impacted during Covid due to most hotels/hospitality clients ceasing in trading) the cash flow within the business had been preventing the business from going to the next level.
The majority of stock is purchased from suppliers in India and payment is required on delivery, which puts a heavy financial strain on the business whilst they wait for the stock to be delivered by sea, as well as waiting for clients to settle their invoices.
Mr H had recently signed a new contract with one of his largest clients, meaning the volume of orders they would need to fulfil would be 3x the normal levels, but naturally this means an even larger outlay of money from the client’s perspective in order to secure the stock.
The solution that we explored for our client was two-fold. Firstly, in order to help ease cash flow pressures we secured him an excellent Invoice Financing facility (with a 6 month free trial) that now eliminates any wait time for client invoices to be paid. Then we secured them a short term loan of £30,000 in order for them to be able to push ahead with another stock container order so they have plenty available ahead of their busy winter period.