Turning 45-day terms into instant access to liquidity
A specialist telecoms services business
This business provides services to the telecommunications industry, supporting clients with high-volume communications such as messages, alerts and advertising. For example, when an organisation needs a large-scale SMS campaign delivered to customers overseas, the business manages the delivery – quickly, accurately and at pace.
When growth creates pressure
The business entered a significant growth phase at the same time as a key customer extended payment terms from 14 days to 45.
While sales were increasing, the longer payment cycle created immediate working capital pressure. Without a solution, the business faced a difficult choice – limit the growth opportunities available to them or take on additional risk to fund larger volumes of work.
Experience that makes a difference
To keep moving forward confidently, the business needed a funding partner that could:
· Provide working capital that flexed in line with sales growth
· Take a pragmatic view of a single-debtor structure
· Move quickly and collaborate closely to get the facility live without distraction
Additional confidence, unlocked with Debtor Protection
The business was introduced to Alex Russon, Regional Director at Ultimate Finance, by Phillip Pratt, one of the experienced team at Hilton-Baird Financial Solutions.
Alex says, “This was a strong business entering a real growth phase, but the shift in payment terms created a clear working capital pinch point. The key was moving quickly, understanding the debtor position properly, and building a solution that let the business keep saying yes to new volume.”
Ultimate Finance provided a £350,000 Invoice Finance facility, including Debtor Protection to give both parties added confidence.
A key element was our commercial approach to the business’s debtor concentration. While some funders were cautious about the “all eggs in one basket” nature of the ledger, Ultimate Finance was comfortable taking a pragmatic view based on the strength and underlying quality of the debtor, supported by additional protection.
Evette Orams, Managing Director of Hilton-Baird Financial Solutions, says, “Standard metrics in terms of concentration couldn’t be applied to this client. So our team took the time to understand the dynamics and details of the business and identified Ultimate Finance as a suitable funding partner, who appreciated the balance of the risk and reward fully. The result is our mutual client now benefits from a tailored facility which meets their needs perfectly, benefiting from the right level of funding to support their growth plans.”
What the facility delivered
By structuring Invoice Finance around the real trading dynamic and the debtor position, we put in place a facility that:
· Restored day-to-day headroom despite extended payment terms
· Enabled the business to accept the increased sales being offered
· Provided additional risk management through Debtor Protection
Kept simple, delivered with confidence
The Ultimate Finance team also focused on making the transition straightforward. Ahead of completion, Head of Relationship Management Emma Booth visited the business to walk through day-to-day systems and ensure the owner felt fully supported and confident from the outset.
Alex adds, “Our job is to combine strong risk discipline with a real-world understanding of how businesses operate. When the detail stacks up, we’re prepared to go the extra mile – and our deal team approach on this one was a big part of getting the facility set up.”
What’s next
With the right working capital facility in place, the business is now positioned to deliver expected sales growth of at least 50%. They also have the confidence to tender for additional work from new clients, knowing funding will be there to support it.
Looking to help your clients unlock greater funding for their working capital needs? Find out more about Invoice Finance with Ultimate Finance.
