Recruitment business trying to expand

Client Profile

Our client was a good-sized recruitment business specialising in the logistics industry. They were looking to grow the business in the hope of selling and retiring in the next 10 years. However, because their clients paid for placements on 30-day terms, tight cash flow prevented them from progressing.

The Challenge

The primary challenge was to create lasting cash flow for a business with multiple existing loans, which complicated traditional financing options.

• Existing Debt: Multiple loans limited access to conventional financing.
• Cash Flow Constraints: 30-day payment terms from clients restricted liquidity for expansion.
• Long-Term Solution: Needed a sustainable funding model to support ongoing growth.

Our Solution

We proposed an invoice finance solution with a lender experienced in the recruitment industry, tailored to the client’s needs:

• Undisclosed Invoice Finance Line: The lender funded 90% of the client’s aged debtors report, providing £560,000 in liquid cash flow.
• Automated Repayments: The lender intercepted invoice payments, taking their cut as repayment, simplifying the process.
• Ongoing Cash Flow: Unlike a finite loan, this solution offered continuous funding to support long-term growth.

Results

The invoice finance solution transformed the client’s financial position and growth potential:

The client gained immediate liquidity to fuel expansion, positioning the business for future sale and retirement goals.

Client Testimonial

"NexGen Business Finance transformed our cash flow with their invoice finance solution. We’re now on track to grow and achieve our long-term goals!"

– Director, Recruitment Business