What makes Close Invoice Finance the right choice for your business?

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1 What makes Close Invoice Finance the right choice for your business? Part of Close Brothers Group plc

2 Contents Managing cash flow through seasonal fluctuations Food & Drink Blavod Wines and Spirits 4 Choosing the right specialist finance partner is an important decision. Some clients choose us for our deep industry knowledge. Some say it s our award winning products. We believe it s that we just understand business. Bridging the payment gap between candidate and client Recruitment Upgrade Recruitment 6 Managing late payment Logistics ATL Haulage Contractors 8 Manufacturing Sovereign Rotating Machines 10 Print & Packaging GWD Ltd 12 Manufacturing SMS Technologies 14 Managing cash flow Services Olympus Building & Maintenance 16 There when it matters

3 Blavod Wines and Spirits Managing cash flow through seasonal fluctuations Food & Drink Funding Online invoice discounting IDeal TM Blavod Wines and Spirits Blavod Wines and Spirits is a premium drinks company which owns Blavod Black Vodka, Blackwood s Gin and Vodka and Jago s. Based in London, the company markets and sells these brands in a number of international markets as well as the UK. The UK business also represents a number of other spirit brands destined for the UK market and many prestigious wine agencies such as Royal Tokaji. Blavod needed a flexible cash flow solution that enabled them to buy extra stock in advance when orders increased at critical points in the year. The drinks business is very seasonal, with by far the largest peak in demand occurring at Christmas, says Richard Ambler, Blavod s Managing Director. We can t afford to lose any business during the festive season, but funding the huge increase in stocks we need at this time can stretch our finances to breaking point. Food & Drink Managing cash flow through seasonal fluctuations Close responded quickly and showed a good understanding of our needs. This gave us the flexibility and security to grow at a difficult time. The company wanted an automated online service that could support the supply of extra stock in advance. Because several deals needed to be financed at once, invoice discounting was a more flexible option than a loan or an increase in overdraft. The funding we were able to generate smoothed out all our seasonal peaks and troughs, but more importantly, enabled us to take on more business representing other premium drinks brands at a time of high demand because we had the cash to do so, Richard explains. Close responded quickly and showed a good understanding of our needs. This gave us the flexibility and security to grow at a difficult time. 4 5

4 Recruitment Bridging the payment gap between candidate and client Upgrade Recruitment Upgrade Recruitment is an independent, award winning recruitment consultancy based in London. The company was established in 1998 and places candidates into a range of permanent and temporary positions within various disciplines including Finance, Sales, Human Resources and Bi-Lingual Occupations. Close were able to demonstrate comprehensive knowledge and experience of our industry sector. The very nature of the business means that we are required to pay temps on a weekly basis which is difficult to achieve when clients pay us monthly, says Jim Cassidy, Managing Director of Upgrade Recruitment. Like many SMEs, we turned to the high street banks and used their loans but their terms were restrictive and obtaining decisions was often time consuming. Upgrade Recruitment chose our factoring facility which is a funding and collections service. Cash based on their outstanding invoices is made available, allowing the company to pay their temporary members of staff as and when they would expect. Our professional and friendly team then collect payment from Upgrade Recruitment s unpaid client invoices. Upgrade Recruitment Bridging the payment gap between candidate and client Recruitment Funding and collections Factoring Upgrade Recruitment has experienced a complete turnaround since joining Close in October The company has grown in terms of turnover, employee numbers, client portfolio and profit, says Jim. Close was able to demonstrate comprehensive knowledge and experience of our industry sector. The team understood our problems and through its flexible, straightforward and ethical approach to lending, has helped us to reach major business goals. 6 7

5 Logistics Managing late payment ATL Haulage Contractors ATL Haulage Contractors (ATL) operates from all major ports in the UK and offers a complete container service carrying both import and export cargo. As a member of the Road Haulage Association, ATL has earned a reputation for providing a professional, efficient service whilst maintaining a flexible approach to meet the demands of a varied client base. Like many companies during the recession, ATL were experiencing cash flow problems that were threatening the day to day running of the business. Amit Karia, Managing Director of ATL said, The main issue was that our debtors were taking up to 60 days to pay invoices, but our subcontractors, who make up 50 per cent of our fleet, required payment on day 30 in order to survive. ATL needed a funding facility to ensure their subcontractors got paid on time. After extensive research they opted for our online invoice discounting solution (IDeal TM ) to help them manage their cash flow requirements smoothly and efficiently. Amit says; When I was looking for an invoice finance provider, Close Invoice Finance was the obvious choice for me. The company came highly recommended and haven t disappointed. Its online IDeal TM product means we can get hold of cash very simply with just two or three clicks of the mouse. Instead of laborious and costly month-end reconciliations, IDeal TM reconciles the accounts automatically on a daily basis. The flexibility afforded by the system has meant that ATL can access up to 15 per cent more funding than they would under a traditional paper-based system. ATL Haulage Contractors Managing late payment Logistics Funding Online invoice discounting IDeal TM The fact that Close are an independent operator means we get direct and speedy decision making, something we would never get with a high street bank. In a nutshell, IDeal TM has afforded us the flexibility to respond to peaks in business, which in turn has had a direct impact on turnover 100 per cent growth in the first year. The fact that Close is an independent operator means we get direct and speedy decision making, something we would never get with a high street bank, says Amit. 8 9

6 Manufacturing Sovereign Rotating Machines Sovereign Rotating Machines is a UK automotive parts remanufacturer, building starter motors, alternators and ignition modules for all makes and models of vehicle. Founded in 1996, the business provides for three key market needs: 1. range and availability 2. Quality and competitiveness 3. First class customer service With travel and fleet budgets tight, purchasing a new car is a bigger decision than it used to be for both individuals and companies. Instead, car buyers are turning to remanufactured vehicles cars where all the key components have been replaced and upgraded to create, what is essentially, a used car with a new engine. In tough times remanufactured vehicles represent an ideal compromise between brand new and used cars, says Sovereign s Managing Director, Richard Welland. Because of this, our orders are increasing, which is great but we re having to spend a lot up front on parts and components if we re to meet that demand. Reluctant to fund an expensive bank overdraft to manage cash flow, Richard talked to Close Invoice Finance about invoice discounting. The account manager took the time to understand our business and was able to judge the quality of our debtors accurately, he says. Recognising that our business is sound means Close was willing to offer the kind of liquidity we needed to grow the company in line with market demand. We chose IDeal TM, Close s online invoice discounting facility, as it could release up to 15 per cent more funding than other traditional paper-based facilities. Sovereign Rotating Machines Manufacturing Funding Online invoice discounting IDeal TM Now our orders are increasing and the business is growing because our risk is managed and our financing secure. Apart from supporting stock purchases, the availability of funding meant Sovereign was in a better position to embrace new opportunities as they arose. We were able to take a risk on new business ventures that would not otherwise have been possible, Richard says. Now our orders are increasing and the business is growing because our risk is managed and our financing secure

7 Print & Packaging GWD Ltd GWD was established in 1986, expanding and evolving into the presentation packaging company it is today. Based in Essex, GWD designs, manufactures and distributes a wide range of presentation packaging used for confectionery, flowers, gifts, marketing and promotions. Customers include Harrods, Fortnum and Masons, Arcadia, Bettys of Harrogate, Mars, Nike, Coutts and Cornhill Insurance. When we first approached Close 11 years ago, our primary aim was to grow the business. In 2000, we opened a new department which involved the hiring of six additional staff and the reorganisation of our production facility, at some expense, says Noel Greenwood, Managing Director of GWD. History repeated itself in 2005 and we needed to once again review and extend the department to cope with increasing demand. With the added pressure of late payments from customers, we were unsure of how to proceed with these major stages of the development. GWD needed a flexible working capital facility to ensure the business could develop as employee numbers increased and additional machinery expenses mounted up. They chose factoring, meaning Close provided the funding and took on the responsibility of collecting payment for their customers. The service was also covered by 100% bad debt protection, removing the worry of non-paying clients and enabling GWD to concentrate on growing the business. GWD Ltd Print & Packaging Funding, collections and insurance Factoring and 100% bad debt protection Unlike traditional high street banking facilities, with Close I can immediately speak with the key decision makers. That year turnover at GWD increased by over 60 per cent and growth continued the following year. Prior to working with Close, we had explored various methods of traditional bank lending and factoring from other suppliers in the market but I much preferred to deal with a personal organisation, tailored to our industry. Unlike traditional high street banking facilities, with Close I can immediately speak with the key decision makers and therefore not only obtain the all important answers quickly, but also gain essential advice which really allows me to concentrate on the development of the business, says Noel

8 Manufacturing SMS Technologies Manufacturing Funding Traditional invoice discounting SMS Technologies Established in 1988, SMS Technologies is a specialist technical manufacturing company, supplying equipment, parts, servicing and service exchange to the medical equipment industry. The company also works with customers in the military, laboratory and scientific fields, delivering to over 150 destinations worldwide. The flexible and straightforward invoice discounting service from Close is playing a pivotal role in helping us grow our business SMS Technologies customers frequently place orders that require a very quick turnaround. In order to respond to customer demand, the company needs to buy stock before the orders come in. Traditionally, we have obtained this essential cash through banking overdrafts but these have little flexibility and we feel very exposed, having all our eggs in one basket, says Steve Sandland, Managing Director of SMS Technologies. In order to meet orders quickly, SMS Technologies chose traditional invoice discounting to give them fast, flexible and cost-effective access to cash, enabling them to buy stock up front. They were able to release cash tied up in their sales ledger while still managing their own credit control and collections. Simply put, the flexible and straightforward invoice discounting service from Close is playing a pivotal role in helping us grow our business, says Steve

9 Services Managing cash flow Olympus Building & Maintenance Managing cash flow Services Funding Invoice discounting online IDeal TM Olympus Building & Maintenance Based in London, Olympus Building & Maintenance offers a wide range of commercial refurbishment, building maintenance and facilities management services across the South East of England. Olympus has played a key role in a number of major developments in the UK including the refurbishment of the Tesco.com offices and the Stony Stratford Call Centre. Invoice discounting with Close is a real strategic growth enabler for businesses. Since installing IDeal TM we have achieved significant growth in both turnover and profit. In order to fulfil contracts of varying sizes, Olympus Building & Maintenance needed steady cash flow to cover costs such as raw materials and sub contractors. Having become dissatisfied with restrictive traditional bank overdrafts, we were keen to find an alternative and more flexible cash flow solution, says Bill Sibley, Chairman of Olympus Building & Maintenance. Olympus chose online invoice discounting (IDeal TM )so that they would remain in full control of their sales ledger, credit control and collection activities. IDeal TM uses real-time technology to lift sales ledger information directly from the company s existing accounting system, enabling cash to be drawn upon almost immediately. Close is a real strategic growth enabler for businesses. Since installing IDeal TM we have achieved significant growth in both turnover and profit. Through the simplicity and transparency of the system I can see the total amount tied up in invoices, and can access up to 15 per cent more cash. I haven t found anything on the market that comes close to IDeal TM, says Bill

10 Our regional network Belfast Glasgow Now our orders are increasing and the business is growing because our risk is managed and our financing secure. Dublin Manchester Birmingham Richard Welland, CEO Sovereign Rotating Machines Newbury London Brighton Call and speak with us today or visit 18

11 Part of Close Brothers Group plc Belfast Birmingham Brighton Dublin Glasgow London Manchester Newbury