What makes
Close Invoice Finance
the right choice for
your business?
Part of Close Brothers Group plc
Contents
Managing cash flow through
seasonal fluctuations
Food & Drink Industry
Blavod Wines and Spirits
4
ridging the payment gap
B
between candidate and client
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.
Recruitment Industry
Upgrade Recruitment
6
Managing late payment
Logistics Industry
ATL Haulage Contractors
8
Financing growth
Manufacturing Industry
Sovereign Rotating Machines
10
Print & Packaging Industry
GWD Ltd
12
Manufacturing Industry
SMS Technologies
14
Managing cash flow
Services Industry
Olympus Building & Maintenance 16
There when it matters
Food & Drink Industry
Managing cash flow
through seasonal
fluctuations
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.
Client
Blavod Wines and Spirits
Challenge
Managing cash flow through
seasonal fluctuations
Industry
Food & Drink
Solution
Funding
Product
Online invoice discounting
IDeal TM
4|
Close responded quickly and showed a good
understanding of our needs. This gave us the
flexibility and security to grow at a difficult time.
Challenge
Solution
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.” 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.
Result
“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.”
|5
Recruitment Industry
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.
Challenge
Solution
“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.
Client
Upgrade Recruitment
Challenge
Bridging the payment gap
between candidate and client
Industry
Recruitment
Solution
Funding and collections
Product
Factoring
6|
Result
“Upgrade Recruitment has experienced a complete turnaround since
joining Close in October 2006. 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.”
|7
Logistics Industry
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.
Challenge
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.”
Solution
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
Client
ATL Haulage Contractors
Challenge
Managing late payment
Industry
Logistics
Solution
Funding
Product
Online invoice discounting
IDeal TM
8|
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.
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.
Result
“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.
|9
Manufacturing Industry
Financing growth
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. Product range and availability
2. Quality and competitiveness
3. First class customer service
Challenge
Solution
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.
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.”
“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.”
Client
Sovereign Rotating Machines
Challenge
Financing growth
Industry
Manufacturing
Solution
Funding
Product
Online invoice discounting
IDeal TM
10 |
Now our orders are
increasing and the
business is growing
because our risk is
managed and our
financing secure.
Result
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.”
| 11
Print & Packaging Industry
Financing growth
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.
Challenge
Solution
“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.
Client
GWD Ltd
Result
Challenge
Financing growth
Industry
Print & Packaging
Solution
Funding, collections
and insurance
Product
Factoring and 100%
bad debt protection
12 |
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.
| 13
Manufacturing Industry
Financing growth
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.
Client
SMS Technologies
Challenge
Financing growth
Industry
Manufacturing
Solution
Funding
The flexible and straightforward invoice
discounting service from Close is playing a
pivotal role in helping us grow our business
Challenge
Solution
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.
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.
“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.
Result
“Simply put, the flexible
and straightforward invoice
discounting service from
Close is playing a pivotal
role in helping us grow our
business,” says Steve.
Product
Traditional invoice
discounting
14 |
| 15
Services Industry
Managing cash flow
Olympus Building
& Maintenance
Invoice discounting with Close is a real strategic
growth enabler for businesses. Since installing
IDeal we have achieved significant growth in
both turnover and profit.
TM
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.
Client
Olympus Building
& Maintenance
Challenge
Managing cash flow
Industry
Services
Solution
Funding
Product
Invoice discounting online
IDeal TM
16 |
Challenge
Solution
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.
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.
“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.
Result
“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.
| 17
Our regional network
Glasgow
Now our orders are increasing
and the business is growing
because our risk is managed
and our financing secure.
Belfast
Dublin
Richard Welland, CEO
Sovereign Rotating Machines
Manchester
Birmingham
Newbury
London
Brighton
Call 0800 220 257 and speak with us today
or visit www.closeinvoice.co.uk
18 |
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