Medical Recruitment Business
Facility: £350,000 factoring facility
Our client is a medical recruitment business that places various therapists into NHS trusts. They were factoring with a well-known bank which had restricted their funding to £250,000 despite their requirement being much higher. Our client has a turnover of £1.9m + VAT and is growing at a steady rate so a higher funding limit was required.
Due to wages having to paid weekly the restricted funding was causing real concerns as to whether they could accept the work that was coming in. We needed to move quickly by finding a new funder that was willing to provide an increased limit. Our client also challenged us to find them more competitive pricing and improve the service in relation to credit control.
Facility – we were able to find a facility with a £350,000 funding limit.
Speed – we were able to get the facility approved and the client transferred to a new lender in under 2 weeks. This meant that essential wage payments and a VAT payment were met and no work turned away.
Pricing – we were able to reduce the service fee by 50%. That may sound like a round number but our client was paying a service fee of 1.29% and we were able to reduce this to 0.65%. The overall discounting fee was also reduced from 5.49% to 4% which represents a 27% saving on the discounting fee.
Improved Service – the existing factoring provider did provide credit control but only by way of month end statements and automated letters. The factoring company that we introduced provides a hands on, pro-active credit control service. They call all debtors as debts fall due and on larger invoices they will call just before due date to ensure everything is in order. That way they can ensure debts are collected effectively and that any queries are dealt with before the invoice falls due.
So in summary we were able to a funding line that provided them with enough headroom to grow the business. We were able to provide an extremely quick turnaround which prevented any disruption to the business. We provided real and significant saving to the business that will equate to in the region of £19,000 per annum. On top of that we were also able to improve on the service levels offered.
We are specialists in helping recruitment businesses source and structure invoice finance facilities. If you have a recruitment business and want to discuss how we can improve upon your existing facility or you wish to set up a new facility please get in touch on 08 94803746 or email@example.com
On average when helping recruitment businesses source an alternative invoice finance facility we save businesses in excess of 30%. We focus on total costs not just headline rates. This can have a serious impact on profits and can equate to a significant increase in sales.