Recruitment firm thrives using factoring and debtor protection

11/06/2009

Excel Technical Consulting, a Cambridge-based recruitment firm, has managed to stay afloat despite problems with cash flow as a result of using factoring and debtor protection.

The firm was concerned that it may go under after two of its major customers collapsed in the economic downturn. The firms had a six figure amount outstanding with Excel. However, the company had recently signed up with a debtor protection policy which protected it against bad debt accrued after its customers collapsed.

In addition the company was also using factoring services to enable it to start up without the need for huge investment, as it enabled it to access working capital instead of waiting for the first cheques to come rolling in.

Alex Hannan, Excel’s director says, “over the past three years, the factoring facility...has ensured we have sufficient working capital to enable us to grow and secure major new clients in the airline industry. He adds, “by advancing the value of our sales ledger, the funding has also meant we've never had to turn down business and can run a payroll of up to £150K a week.”

Hannan says the factoring has also enabled the firm to expand its exporting business, "...services as payments are made in both Euros and Sterling. This flexibility has proved particularly beneficial given the current exchange rate."