Preserving Cash Flow is Food for Thought
20th Apr 2010
This thriving food company has more than trebled its turnover in the last four years and continues to grow - with help from us.
The business was founded five years ago and specialises in the preparation of fresh soups, cooking sauces and marinades free of additives, preservatives and colourings.
By its second year the company had reached the enviable position of having a proven product, fixed overheads and, best of all, a full order book.
However, the result of this investment in research and development had meant that the company had a relatively low balance sheet worth. The issue was that rapid expansion was causing cash flow constraints which, if left unresolved, could have affected sales potential. Additionally, the business was fairly dependent upon one major client. On his accountant’s recommendation, the Managing Director contacted us.
He commented, “The commercial attitude they demonstrated towards our debtor concentrations, combined with their willingness to consider all aspects of this expanding business, proved vital.”
He and his partners concluded that confidential invoice discounting with Five Arrows would provide the best solution for the company’s future needs.
“Confidential invoice discounting has assisted us with cash flow and helps keep bank borrowing down”, reports the MD. “The service is very user friendly and supportive. This is vitally important when working closely with an Invoice Financier.”