Mike Parkinson from Reach Commercial Finance talks about benefits of factoring and asset finance for a start-up client in fresh fish hospitality sector
We were introduced to the co-directors of a fresh fish hospitality business by their accountancy advisors, in the early stages of sourcing start-up funding.
Whilst the bank was happy to provide basic banking services, they were unable to support the start-up’s growth plans with additional funding so, on recommendation from the external accountant, Reach Commercial Finance stepped in.
We talked to them about the benefits of using a smaller independent funder at this early stage of their business, to provide advice and hand-holding along with the capital.
They were a bit nervous about the factoring process initially but soon convinced it was the way to go for the business at that time, as they would be delivering goods then waiting to be paid.
Factoring helps thousands of businesses in these circumstances turn unpaid invoices into cash in the bank. It’s a well-established way of providing finance that directly grows in proportion to your turnover.
The company took out a £30,000 invoice factoring facility to help get the business up and running. They also needed further finance to invest in a new delivery vehicle and worried about not being able to secure it after a few personal credit issues.
By being honest about that, we were able to introduce them to a funder that understood their situation, respected the transparent approach and delivered c£14,000 in asset finance to support the vehicle purchase.
In the end we delivered the invoice factoring and asset finance deal as a bespoke package for the company – something we do a lot for clients – which allowed them to raise more money at a better overall rate.
“To be very honest, having never spoken to a company like Reach before we were a bit dubious thinking that their solutions would be out of our price range but after speaking with Mike Parkinson we were put at ease immediately. He was down to earth and supportive of our ideas and plans and I knew he would be able to help. We are still using his business finance solutions and we have had no problems or concerns with any of the options provided. We would not hesitate in recommending Mike to anyone looking for finance, he will deliver!
Director, Fresh Fish Co
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