Here on the Bibby Financial Services Blog from time to time we look at case studies of clients who are thriving with the help of Bibby Financial Services. This week we’re looking at LS Contracts, a progressive Milton Keynes based recruitment business which is utilising cashflow funding through our invoice finance service.
LS Contracts provides temporary and permanent staff to a variety of sectors but focuses in particular on the logistics and construction sector. Director Jane Eggleton has 15 years’ experience in the business and LS Contracts now manages up to 500 staff with around 200 active at any time.
Over the past 3 years the company has experienced rapid growth and it now employs a team of six recruitment specialists to serve the staffing needs of clients. The company is now planning to expand its operations into the financial services sector.
Like all businesses, things haven’t always been plain sailing for LS Contracts. Following the departure of a former director business owner Jane found herself with unexpected debt and no contingency plans in place.
“I really had to start again but the lessons I learned from this experience have helped me tremendously. Before I could grow the business, I had to pay off the debt which was passed onto me. It took a while but we are finally there and the business is now in a great position to move forward”, Jane said.
In order to drive the business forward Jane begin to look at alternative funding options. Once she rebranded the business she settled on a funding partnership with Bibby Financial Services.
Banks unwilling to lend
Jane explains: “In the economic climate at that time – and with the debt we had inherited – the banks were unwilling to lend to a small business like ours. I was confident that we had a unique service offering but we needed working capital in order to take on more temporary and permanent staff.”
Bibby Financial Services provided a £350,000 invoice finance facility and this enabled the business to unlock value in unpaid customer invoices. Bibby Financial Services also assisted with credit control and management services.
An extension of our own team
Jane explains: “Having a team of credit control specialists managing our payment collection is a huge advantage and allows us to focus on finding new clients and generating more business.
“In fact, BFS has opened my eyes to the benefits of outsourcing credit control and when a major retailer defaulted, it was only their expertise and willingness to help that enabled us to retrieve the money”, Jane said.
The decision to select Bibby Financial Services as the business’ funding partner was not undertaken without research first, Jane says “Having evaluated the services of six invoice finance providers, we definitely made the right decision with BFS.
“The support we receive from them is fantastic but it’s not only the funding we value, it’s also their expertise. Our BFS account management team are experienced and always at hand to offer support and guidance, which is a huge benefit to us.
“They’re actually more like an extension of my own team and the credit control services allow me to concentrate on winning business, instead of chasing outstanding payments.”
Contact Bibby Financial Services
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for businesses in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.