IT Consultancy Business
Our client is a substantial IT consultancy that specialises in cloud consultancy and the implementation of sales focused systems. Their business had encountered rapid growth and they had invested in training and infrastructure that had resulted in planned losses. Their incumbent funder was a high street bank and because the business was not from a traditional sector in terms of a factoring client and because of the financial performance the bank decided that the client should find a new provider.
The business had some major issues both financially and also in terms of their suitability for a factoring service. Financially their main issue related to substantial HMRC arrears which after careful consideration was addressed through the formal procedure of a CVA. This removed any uncertainty of how HMRC would react and allowed us to focus on raising finance.
Our clients internal procedures and audit trail were also not well suited to factoring and because of this lenders were not too keen on supporting. However, we were able to work with them to improve this and because of our close relationship with underwriters we were able to demonstrate directly that this was a deal that should be supported.
The end result was a factoring facility with a limit of £500,000. This provided the business with adequate working capital to support their ambitious growth plans. Interesting the facility that the bank had originally provided was only £200,000 so by working with Funding Solutions the business can now grow without the restriction of factoring facility that is too small.
No matter what issues our clients face we look to support them and work with them to ensure that they can obtain the type of facility that their business needs. Our expert advice surrounding the restructuring of debts and the re-engineering of internal processes gave our client a better chance of raising the required finance. The close working relationship we have with lenders and their underwriters allowed us to secure the facility our client needed.