Sales Ledger Finance Case Studies

Confidential Invoice Discounting 3

Turnover: £1,000,000

This family run print finishing company needed funding to expand the business. Their bank was unwilling to increase their overdraft facility, and recommended invoice discounting (and their own discounting company) as an alternative. Despite the long standing banking relationship with the client, and the excellent administrative systems in place, the bank-owned factor lacked the flexibility to structure a deal for them. The bank then recommended that they contact Sterling Capital Reserve for assistance. We put them in touch with an independent factoring company, and a facility was quickly arranged to the satisfaction of both parties.

Factoring 3

Turnover: £100k

Based in London, our client had been making hats and exporting them around the world for over 20 years. They had won some significant new orders, and were outsourcing work in order to meet the increased demand. They needed to generate extra cash to enable them to pay the out workers. They had no banking facility in place, and felt that using their sales ledger to generate funding would be the most flexible way to grow the business. They already had offers on the table from a couple of factoring companies, but were seeking a better deal. This is where Sterling Capital Reserve was able to help. We arranged a facility with an independent factoring company that specialises in the needs of the smaller business, and was able to offer an excellent and personalised service at a more competitive rate.

Factoring

Turnover: £800k

Our client, based in Buckinghamshire, sells mobile telephones and airtime to over 200 customers. When they approached Sterling Capital Reserve they already had a factoring facility in place, but were unhappy with the confusing paperwork and management information provided. Their bank recommended their in-house factoring company; however, they proved rather inflexible, and were unable to handle the type of debt and level of work involved. Faced with a vast selection of alternative factoring companies, and unsure where to turn, a business contact recommended they try Sterling. We put them in touch with a couple of factoring companies, who we knew could handle more 'difficult' types of business. They took the time to understand the client's business and were able to structure a deal accordingly.

The Result: the account runs well, and both client and Factor are happy with the facility and the relationship.

Disclosed Invoice Discounting

Turnover: £1.2m

Based in Leicestershire, this manufacturer of cardboard cartons was established in the late 1980's, providing a high quality product to a blue chip debtor base. More recently, the company has been through a re-organisation in order to reduce costs and streamline operations. Having operated a confidential invoice discounting facility for a number of years, their relationship with the discounting company had not been without its problems. The discounting company had undergone a couple of changes of ownership, and there had been frequent changes in the members of staff handling their account. The final straw, however, came when the discounting company tried to impose a move to a factoring facility. Unhappy at the prospect of changing to factoring, our client contacted us to find an alternative invoice discounting facility. They faced a long notice period to terminate their existing facility, but the discounter that we introduced was extremely patient, and helped to make the final transfer between the two companies as smooth as possible.

Confidential Invoice Discounting

Turnover: £1.1 million

Established as a partnership over 10 years ago, this road freight transport company became a limited company only 12 months ago. Looking to improve their cashflow, they were interested in a confidential invoice discounting facility, and had already had meetings with 6 factoring and discounting companies before approaching Sterling Capital Reserve. Despite having offers on the table, they did not feel comfortable to go ahead with any of the companies they had already dealt with. They wanted a more personal approach, and were looking for a company to work in partnership with them to help them achieve continued growth. They wanted a factoring and discounting company that could offer that little bit more in terms of service. We arranged for them to meet with a well-respected independent company who fitted the bill perfectly. Their representative immediately put the client at ease. Every aspect of the facility was explained in great detail, and all the costs were highlighted (so there would be no hidden extras). The client was delighted, and a week later they received their first payment from the discounting facility.

Confidential Invoice Discounting 2

Turnover: £800k

This London based business had a couple of tough years of trading, but was forecasting a return to profit, and required an invoice discounting facility. They were particularly interested in the confidential aspect of a facility, however their financial position meant that the majority of discounters turned them down as unsuitable, and could only offer factoring. Here at Sterling Capital Reserve we deal with independent factoring companies who are flexible in their approach and tailor facilities to meet the needs of individual clients. We put them in touch with a discounting company that took time to understand the business. The process took a little longer than usual, but the client agrees it was certainly well worth the wait.

To Summarise...

Our clients range from small family firms through to blue chip organisations. Funding has been provided from a few thousand pounds through to millions of pounds. We are Factoring Brokers, arranging factoring facilities for UK businesses.