7 ways successful businesses benefit from optimising their funding

21/11/2019

Many business owners find a funding facility and then stick with it, even if it’s no longer providing adequate support.

But, failing to have the most suitable solution in place to support their needs could cause businesses to miss out on significant benefits and opportunities.

Here are seven success stories of businesses that we have worked with and how they have benefited from optimising their funding facility.

Could your business benefit from accessing a more suitable funding facility too?

1. Secure additional funding

As a business develops so does its funding needs, and facilities which once worked well may no longer be appropriate.

When a public transport services company secured a major five-year contract worth £450k a year, the business quickly needed to secure a new facility to access further funding, reduce existing borrowing costs and maintain a healthy cash flow.

Using our team’s extensive knowledge of the funding market we introduced a variety of suitable options that could support the business going forward.

The company opted for a £60k factoring facility with the funder they felt understood them best.

With the new facility in place, they were able to save on borrowing costs and gain peace of mind that they will have regular cash flow moving forward, allowing the business to fulfil the contract and secure further growth.

Click here to find out more about their story and how we helped

2. Increase flexibility

There often comes a time when a successful business will outgrow its current funding facility.

A supplier and fitter of commercial flooring experienced this precise problem when their turnover increased, but the size of their funding facility did not.

Their funding facility was capped and didn’t allow them the freedom needed to allow for peak periods.

Fortunately, our team was on hand to help them secure an additional £350,000 to keep their business on track for success.

Now, with their new confidential invoice discounting facility in place, our client has the confidence to move forward, knowing that their funder understands their business and its growing needs.

See how we helped find their ideal solution here

3. Access additional services

While some funding facilities simply boost cash flow, others come with additional services which can be beneficial.

A steel supplier had been using an invoice discounting facility for many years, which was helping them to overcome the cash flow issues created by trading on credit terms.

But after speaking to our team, it became apparent that a different facility would enable the business to access a higher percentage of the invoice value upfront to provide even greater cash flow support.

Plus, the credit control service that the new factoring company could provide would help to remove this burden from the business, giving them more time to focus on growth.

4. Better cash flow

Although high levels of demand for a growing company’s products and services sounds ideal, satisfying orders whilst keeping cash flowing can be a difficult act to juggle.

When a £25 million turnover importer and wholesaler required a more supportive funding facility to expand and keep up with demand, we were able to introduce an asset based lending facility to improve their cash flow.

Asset based lending is effective and therefore popular amongst established business wishing to either fund expansion or meet day-to-day cash flow requirements.

It offers businesses flexibility by enabling them to release cash tied up in a range of existing assets – not just invoices – and our client was impressed with the encompassing nature of the facility and the attributes of the funder we introduced.

The new facility will ultimately enable the business to substantially increase levels of working capital whilst satisfying orders, helping it to grow.

5. Save money

When comparing funding facilities, it’s vital that businesses don’t just compare how much they can access and what it costs, but also look at the service that accompanies it and whether or not the funder is likely to have the required sector understanding, appreciation of their needs and appetite to support.

With this in mind, comparing funding options can be a challenging process.

We try to make it as simple as possible for our clients by being on hand to answer any questions and explain any financial jargon.

An installer of sprinkler systems and security equipment needed to access a facility to support their cash flow as they grew.

They approached their existing funder for a quote but were keen to weigh up their options.

With our help, the business compared various options and opted for the funder they felt offered the best overall structure, including cost and perceived service levels.

Find out more about how we helped here

6. Access a more supportive partner

The relationship you have with a funder can be just as important as the funding you can access. But sometimes these relationships deteriorate beyond repair, as a specialist recruitment agency found out.

Whilst they were happy with their invoice factoring facility they were unsatisfied with the level of service from their funding provider, which was starting to take its toll.

Keen to find a provider more aligned with their expectations they approached us for help.

Now, they have an invoice factoring facility worth £600,000, chosen on reliability, perceived level of service and cost.

The funder was also able to offer the business a comprehensive and dependable sales ledger management service, ensuring the business could retain consistent cash flow and protection from the consequences of late payment.

7. Achieve growth

Growing your business is an exciting time, but rapid growth can overstretch cash flow.

A metal fabrication and engineering company who were experiencing substantial and sustained growth approached Hilton-Baird Financial Solutions when their overdraft could no longer keep up with the speed of their expansion.

To maintain and increase their impressive sales figures, they knew a funding solution that would grow with them was required.

With our help they secured a factoring facility which was perfectly suited to support their growing business.

Would you like to optimise your business’s funding?

As a commercial finance broker with access to a multitude of lenders, we’d love to help. Contact us today on 0800 9774833 or info@hiltonbaird.co.uk to see if you could access a funding facility better suited to your needs.