Invoice Finance helps NW firms target future sales

It was great to read a press release this morning on a North West firm, namely Valera Ltd whom was reporting a strong outlook for the future with an ambitious turnover increase as a direct result of an invoice finance funding package.

The Preston based supplier of commercial catering and refrigeration equipment supplier said it is now aiming for turnover of £10m over the next two years, which is an increase of 25% after securing a £2.5m funding package, including invoice finance.

The company was founded in the early 1990’s and whist being a distributor for brand names like Sanyo and Whirlpool with products such commercial microwave ovens, fat free fryers, and dishwashers, the firms’ founder and managing director Pratap Gadhvi said the business was affected by currency fluctuations at the onset of the recession as stock that had been purchased in advance was left unsold.

However, he said that the finance package – which comprises a £1.6m cash flow facility and a £400,000 loan should provide it with the liquidity to take advantage of emerging opportunities.

Gadhvi  had said that “Our banking partner was largely unsupportive of our situation….”, and that “More than 60 per cent of our business is done between April and September, so it was also important to ensure cash flow was boosted all year round.”

Having worked on deals like this for many many firms over the years it is great to be able to hear about or comment on stories of success and positivity in an otherwise gloomy economy. That the core services we provide was at the heart of the story was an added bonus.

With a recent survey and report stating that trading for small and medium-sized firms in the north west has worsened in recent months, with 48 per cent of business managers and owners saying it has become ‘very’ or ‘incredibly’ tough, and 45 per cent of respondents thinking the effects of the recession could be felt for three years or more it is encouraging to see firms like Valera reporting optimism.

Late payment problems and unsold stock levels during slow trading periods affect thousands of North West businesses each and every day and its products like invoice factoring, invoice discounting and inventory finance that can restore balance to a firms’ cashflow during slow or seasonal periods.

Factoring Finance Ltd have more than 30 years experience in finding the best invoice and asset backed finance solutions for UK business.

With an extensive broker network and access to sector specialists, Factoring Finance can start unlocking the potential in your business, free up the cash in your outstanding invoices and leave you to put more time into your business.

Factoring Finance Ltd are independant brokers and as such, we are not tied to any one Factoring, Invoice Finance, or other Commercial Finance provider. While we are based in the North West, our broker network extends across all of the UK.

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