Invoice Finance helps decorating company to continue trading
Keith Jones & Sons Decorators provides painters and decorators to businesses and commercial properties across the country, covering various projects ranging from hotels to the banking industry.
Read time: 5 mins Added: 03-06-2019
They recently won a substantial project with a bank to refurbish parts of their branches. However this required additional capital, as their existing overdraft did not suffice to take on the project.
Whilst the founder initially sought an increase in the overdraft facility, this quickly proved to be a less favourable option. This was deemed too risky as it would have required security over the director's personal property. It was at this stage that Invoice Finance was introduced.
Paul Jones, Managing Director, had not used Invoice Finance prior but felt happy with the process and what it would do for the business.
Paul explained the process as follows "It was a straightforward process that has allowed us to be a bigger business."
The product has allowed the business to continue trading by providing cash for their invoices. Paul noted that customers have frequently paid slower in recent years and Factoring with Debtor Protection has helped to maintain a positive relationship with these customers, many of which the business has dealt with for over 30 years. This solution ensures flexibility in cash flow and thus reinforces the strong and trusting relationship Keith Jones & Sons Decorators have forged throughout the years.
Paul mentioned that "it has also allowed us to take on new customers over the last few years; we have increased our turnover from £1.1m to £1.9m. I would not have been able to do this without our Invoice Finance solution."
It also gives Paul peace of mind that he can pay his staff on time, a high priority, as employees are at the heart of any business.
Beyond this, Paul has praised the support he has received from his Lloyds Bank Relationship Manager, Karen Hibbert, who helped to increase the business' prepayment for a short period of time when Keith Jones & Sons Decorators were faced with a bad debt of approximately £30k.
Paul highlighted that "Karen also recommended that we take the debt protection, which has been invaluable to the business. She understands our needs and she is really easy to talk to."
Lloyds Bank has been crucial in turning business opportunities into action. Keith Jones & Sons Decorators has been able to meet financial needs through Lloyds Bank's support and generate further opportunities, allowing the company to grow in size and revenue.
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