Case Studies

Introduction & Menu

The following case studies give an idea of the varied uses of factoring:

• Bedroom Furniture Manufacturer
• Wine Merchant
• Heating and plumbing contractor
• Catering Equipment Hire
• Publishing House
• Haulage company
• Importer & Distributor of Stereo Equipment

Bedroom Furniture Manufacturer

This 50 year old family run business produced a line of bedroom furniture and fitting service to housebuilding companies. With a full order book for the next 12 months and its overdraft at its limit, the bosses had been advised by our team to begin a factoring facility.

At the time the company contacted us they were worried because they needed to pay their main wood supplier. We immediately recognised the importance of the situation. The client spent a full day being explained the ins and out of factoring. The business was saved with in one working day.

This UK based company now employs over 350 staff and is considering purchasing a new factory.

back to top

Wine Merchant

This company was three years old and was a regional supplier of quality fine international wines. Even thought the company had made aconsiderable loss within the last 12 months our business recovery team felt confident with a little help they could succeed. The chairman of the company was quite old fashioned and was ready to retire and sell out at a loss to a national competitor. We were called in just in time.

One thing the company did have was efficent accounting systems and a full order book. We strongly recommended "invoice discounting" as a solution. The result was amazing, even to the bank manager agreed.

A confidential invoice discounting facility began within 7 days. The results included overnight success and enabled the business to not only triple it turnover but also give the chairman a education in modern funding.

back to top

Heating and plumbing contractor

This firm had become well known through its locality and specialised in contracts for general plumbing and heating work. We were approached 4 months after trading had commenced because the directors needed help in the finance department. We secured them a tailor made factoring facility. It was also felt that credit insurance would be needed. Due to our intervention their first years turnover grew to exceed £3,500,000,

back to top

Catering Equipment Hire

This business had had been trading for10 years in general catering equipment sector. The business had never had a great accounts team and as such cashflow was always tight. Our recovery team know that a recourse factoring facility would be the answer to the situation. The business grew virtually overnight and cashflow eased up geting rid of the overdraft. The business is now looking at a national expansion programme.

back to top

Publishing House

This 75 year old family run business had a high turnover of around 10 million pounds, it however always had a huge debtors ledger. It hit problems when the bosses decided to intergrate into distribution. The company was losing £10,000 a month and poor management had resulted in further losses. The business was facing bankruptcy.

The company was far to well established and well known to close down and even its bank manager was running out of hope. The overdaft was at its limit of £250,000.

Sales were always high but the industry was facing a rescession and many companies were slow to pay. This project was highly specialised and our recovery team, led by a team of insolvency practitoners soon came up with an answer included remortgaging the freehold premises and arranging some asset finance.

5 days later a leading factoring company had agreed to provide a funding line of £1,550,000 against a 65% prepayment. The business has now doubled it profits.

back to top

Haulage company

This 8 truck haulage company and had achieved turnover of £2,000,000 in the first year. Our receovery team were contacted after it was turned down by its own bank's factoring division. Within 7 days the company had a tailor made factoring facility.

back to top

Importer & Distributor of Stereo Equipment

This comany had high turnover, very high debtors book and had made losses for the last 2 years. The company was run by the sons of the retired founder and could not face insolvency.

With the directors keen not to report further problems to their father, they were advised to speak to our recovery team by their tax office. The rescue package included recourse factoring facility with a funding limit of £2,000,000, an agreement to finance stock and a state of the art credit referencing system.