Here at Bibby Financial Services (BFS) we love to hear success stories from our customers. On the Bibby Blog we’ll share these case studies from time to time. In this blogpost we’ve got a great start-up story about a company formed at the height of the recession that negotiated tough trading conditions to quickly become a worldwide brand.
Bluechipworld Sales and Marketing Limited began trading in May 2009, it started by importing mobile device accessories for the Far East to sell in the UK. Like many start-ups, the business battled cashflow challenges from rapid growth.
A growing order book
Bluechipworld had a healthy and growing order book, but the business model required funding at both ends of the order process and this proved to be a problem. Manufacturers had to be paid as the orders came in, at the other end if the process retailers increasingly demanded longer payment terms.
While on paper the business was going from strength to strength, in reality cashflow was becoming a major issue. In June 2011, the business began to look for a reliable funding source that would suit their business model. They wanted a long term facility that would grow with the company.
Expansion with Bibby Financial Services
It was at this time that Bluechipworld started to work with Bibby Financial Services. Invoice financing proved a perfect match for the Bluechipworld business model. While invoice financing is sometimes seen as an ‘alternative’ form of business lending, the team at Bluechipworld made it their first choice.
Three years on the partnership with Bibby Financial Services continues to work and now, Bluechipworld are set to double their £7 million pound turn over. The firm has had major success with the iT7 Audio brand, which comprises a range of premium headphones and speakers. The brand is a joint venture with ex-Aston Villa midfielder, Ian Taylor and has attracted endorsement from entertainment and sporting stars alike.
Invoice financing, a solution for growth
At the time Bluechipworld began trading, bank funding for businesses was hard to come by. Even today as we see an upturn in the economy banks are increasingly turning viable businesses away for a variety of reasons. In a recent study of 1,000 business we found that that nearly half of businesses rejected for finance were told they hadn’t been trading long enough. This sort of attitude by the high street banks means that invoice financing products are stepping in to fill the credit vacuum.
There are two main types of invoice financing: factoring and invoice discounting. The advantages of both products is that they allow you to access money your business is owed quickly, often within a matter of days. Depending on which product you choose you may also receive assistance with credit control and sales ledger management. Which can assist some business who struggle to manage this aspect without dedicated staff.
Bibby Financial Services
If you’re a UK business owner looking to expand your business and you’ve recently been turned down for funding, or your business has a strong order book but some cashflow issues it would be wise to contact Bibby Financial Services online, or by phone on 0800 91 95 92. Our staff are business experts, happy to answer any question and provide useful advice. Get in touch to find out why we’re becoming the first choice for business lending.