Background
The client, Jo Thomson, was looking to secure a new invoice finance facility for Advantage Group, a Shipley-based recruitment company.
They already had an existing facility in place but were looking for a more cost-effective option. This meant going out into the marketplace to find a solution that offered more competitive terms.
The challenges
As part of their work, Advantage Group recruit roles for companies on a temporary and permanent basis. They then invoice their clients each month for the relevant wage rate.
The main challenge in this scenario was finding an invoice finance provider who would give suitable funding for both types of invoices and offer the highest possible advance against the invoices.
Reducing the costs associated with the facility for the business was also a key driver when searching for a new funder.
The Pegasus solution
As with every business we work with, we spent time with the client to pinpoint exactly the needs they were looking to fulfil.
Once we had developed an in-depth understanding of what was required, we were able to present five suitable options each offering competitive quotes. The client then selected their chosen provider based on the advance rates offered, and other favourable terms, including interest rates and service charges.
As part of the deal, a blended funding rate of 80% was agreed across the business’s temporary and permanent assignments. This was compared to rate of 85% on their temporary assignments and 65% of their permanent under their previous agreement. It meant they would achieve a higher funding line overall and with lower associated costs.
The customer benefits
Advantage Group benefitted from a highly cost-effective invoice finance facility, serving to boost cash flow and counteract the burden of late payment that plagues many businesses. It improved on their previous facility for increased flexibility.
The new agreement has lower service fees, better interest rates and a higher advance on their blended invoices. The facility is now much easier for the client to operate.
What Advantage Group said
“We chose Pegasus because of their existing relationship with our chosen lender and their understanding of invoice finance. It was easy to discuss our needs with the team and they helped us to explore alternative options.
The result has been a more cost-effective facility for the business. I would definitely recommend Pegasus to other businesses facing similar funding barriers.”
About Pegasus Funding
Pegasus Funding is a corporate finance specialist pairing companies with the funding they need to address their unique requirements.
We have a wide experience working with clients across industries to achieve their goals, helping to fuel growth, manage cash flow and build resilience. We have access to over 600 different sources of funds to suit even the most complex funding needs.
Alongside our finance raising service, we provide exceptional guidance that supports businesses through the funding process, strengthens funding applications and creates effective strategies to develop your company.
We are also regulated by the Financial Conduct Authority.
There is no issue too complex. Whatever obstacles you are facing, speak to an expert member of the Pegasus team to find out how we can support you.