Industry: Services
Product: IDeal™
Facility size: £1.5m
The client
This well-established multi-trade property maintenance and repair contractor is based in Scotland and has built up their successful business as a one-stop service for joinery, plumbing, electrical works, building, and painting and decorating.
The dedicated team, many having worked for the firm for over 10 years, have built long-standing relationships with housing associations, repeatedly winning contracts and tenders. They primarily serve these businesses, along with several commercial and industrial clients, who benefit from the wide range of services offered, which include out of hours support, reactive repair, and standard maintenance.
The challenge
The firm has been using invoice finance to unlock the cash tied up in unpaid invoices, allowing them to supplement their cash flow.
This access to capital upfront brings with it multiple benefits, including:
- Covering operational expenses
- Investing in growth opportunities
- More effective management of financial obligations
The company finds invoice finance helpful in managing seasonal fluctuations, particularly during December and January, when there is often limited access available to residential buildings over the holidays and new year period.
During a period of growth, they were keen to secure a new funding arrangement to support development plans. They recognised the value of having a dedicated relationship manager who was empowered to make swift decisions, providing the clarity and confidence needed to run the company efficiently.
The solution
Close Brothers Invoice Finance has provided a £1.5 million discounting facility, using our comprehensive IDeal platform, which integrates with over 200 accountancy software packages for seamless fund management. It uses daily automated reconciliation, real-time sales ledger extraction and instant access to up to 90% of outstanding invoice values. As an easy-to-use system, it saves time and ensures smooth, uninterrupted operations.
The team at Close Brothers Invoice Finance took the time to understand the business model, with experience in supporting service led firms and their needs. For our customer, it resulted in:
- A tailored funding solution that could adapt to a growing trading performance
- Access to a dedicated relationship manager
- A funding platform that smoothly interfaces with internal accountancy software to free up time for the management team
The result
Continuing to use invoice finance is helping manage seasonal fluctuations, ensuring consistent cash flow and financial stability, with greater headroom to better support ongoing growth.
Additionally, IDeal has reduced the time spent on managing the facility, giving the management team time to focus on development. With an invoice finance provider who took the time to understand the industry and the subsequent customer needs, they are well-positioned to enhance their current offerings and plan for future expansion.
