How International Supplier Finance eased cash flow concerns for Manchester Gym-Wear Importer

  • Anil Kanda
  • 07 Oct, 2014

After 2 years of trading and a projected annual turnover of £310k, business is looking good for this Manchester Gym-Wear Importer. Up to now the business owner had used personal reserves to self fund all the start-up costs and overheads. Though they were getting plenty of orders, their personal reserves were running low and cash flow became a growing concern. Their supplier is based in Turkey and requires 50% payment upfront and 50% after the goods have been inspected.  So when their only customer, who is a large online Retailer,  requested an unexpectedly large order for Christmas stock, it was confirmed that their cash flow could not support the initial supplier payment.

The Business did not want to lose the order or indeed their customer and needed immediate funding in place to pay the supplier and complete the transaction. An intermediary referred them to Ashley Business Finance and 1 and a half days later they received a visit by an Ashley Advisor who discussed the immediate and long term needs of the business and identifying the best solution. The diagnosis was simple, like many other owner managed businesses more time was spent juggling cash flow rather than winning new orders, distracting the focus from actually growing the business.

Within 10 days since the meeting, Ashley provided a Supplier Finance facility to solve the short term funding need and a full Invoice Finance Facility for ongoing cash flow support. Through the Supplier Finance Facility Ashley paid the initial £50k deposit and will only recoup the fee when the goods have been paid for by the customer.  For ongoing support, the Invoice Finance facility will improve cash flow by immediately unlocking up to 85% of their sale invoice value rather than waiting 28 days for their customer payment., their funding limit is 100k that will automatically increase inline with their turnover.

For as long  as they are with Ashley, the client will have a dedicated Client Manager and Credit Controller  who will act on behalf of the client, collecting  outstanding invoices and managing  the sales ledger, therefore drastically reducing their administration time so they can concentrate on creating new sales and growing  their business.