Case Study

Allied Tanks - funding fast growth

"We were growing too fast - we couldn't keep up with chasing people for money and fulfilling the overflowing order book"

A formal apprenticeship gave ambitious Philip Doughty a first class engineering background. This coupled with a number of successful years in Sales & Marketing Management with a leading manufacturer, led to his entrepreneurial decision to form Allied Tanks Fabrications Ltd in 1984.

Spacious premises to accommodate the manufacture and assembly of steel storage tanks (capacity up to 200,000 litres) were found in the heart of the Black Country and a recruitment drive produced a skilled workforce of steel fabricators.

A great start
The company's reputation for dependability spread as orders from Phil's contacts in the mechanical engineering industry became a steady stream. An instant yet reliable money supply was needed to fund the growth. "We were growing too fast"comments Phil, "We couldn't keep up with chasing people for money and fulfilling the overflowing order book".

Financial backing found
Eighteen months after starting the company, sound financial advice from a colleague led Phil to investigate invoice finance and he approached Close Invoice Finance - independent cash flow solution specialists. He knew how the service worked - they could manage his sales ledger, credit control and collection activities - but he soon learnt of the advantages to be gained from an immediate 80% advance against his outstanding invoices.

A regular cash flow enabled Phil to negotiate discounts from suppliers and thus become more competitive. Removal from the embarrassment of chasing his customers for payment gave him the freedom to bid successfully for new orders from existing major UK clients.

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