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Quick Turnaround for Lead-Generation Company

May 2016

Location: Glasgow

Facility: Factoring

A factoring facility was set up in just 72 hours
lead-generation-factoringA Glasgow based company entering a period of significant growth with its largest customer found efficient and effective financial support in November by using Funding Solutions. When it was struggling to find ways of financing the work it was being asked to undertake by its largest customer Funding Solutions was able to source a suitable cash flow solution.

The company had been trading for a year and had seen a period of steady organic growth in this time. However, in October, their largest customer had been contracted to supply an even larger volume of warm leads into their customer British Gas. British Gas wanted to further increase its market share and tasked its key data suppliers with providing leads to be converted to customers. This, in turn has put pressure on their suppliers whom, whilst recognising the opportunity that this represents, would require the cash flow to pay extra staff to fulfil this order. Suppliers that could not fulfil the new greater demand would see themselves unable to continue to supply data to this customer and as such our client was in danger of becoming a victim of their own success.

The Director sought help from traditional banking streams, however was left wanting as it was clear from the initial conversations that there was little appetite to assist. It was also clear that any solution would take weeks if not months to put in place. In a passing conversation with a fellow data supplier whom already benefited from advice from Funding Solutions he was advised to have a chat with us about his options. At Funding Solutions this is how we work. We aim to understand the needs of a client and then explain the options that are available. Only then can a business owner make an informed decision about what is best for their business.

Funding Solutions were able to speak to them over the phone and by understanding their needs we were able to recommend a factoring company that could not only move quickly but could structure a facility that met their needs. Structure was incredibly important as the client would have one very large customer that would account for the majority of their outstanding invoices. Had the wrong factoring company been recommended the facility could have been restricted by way of a concentration limit which many lenders impose. This would have meant insufficient cash would have been generated to pay wages which would have had catastrophic consequences for our client.

Importantly, from our first conversation to the facility being fully operational only 72 hours had expired.

Funding Solutions is a fully independent and impartial business. We aim to understand our client’s requirements and then recommend the best lender to meet the needs of our clients. Our advice is always based on allowing clients to make an informed decision. In order to do this they need to fully understand the costs and benefits of each available solution.

If you have a funding requirement for your business contact us today.

February 2014