Creative Design Studio, a York-based graphic design and printing company, has won new contracts with bars across Yorkshire, Derbyshire and Spain, after securing a factoring facility from Lloyds TSB Commercial Finance.
Chris Kirby, 26, set up Creative Design Studio in August after spending eight years working for other design and print firms. He quickly built a reputation among local businesses in the building, energy, retail and hospitality industries for the quality of his websites, corporate brochures, flyers and marketing projects.
Creative Design Studios has used the factoring facility from Lloyds TSB Commercial Finance to invest in its facilities and pay suppliers, enabling the company to secure new contracts with Varsity Bars in Derby, Moko Lounge and The Viper Rooms in Harrogate, Linekers Bar in Ibiza, without tying up working capital.
Managing cash flow can be challenging for start-up businesses, as they rely on invoices being paid quickly so they can buy stock and win new business. Factoring facilities enable companies to have invoices paid upfront and also takes away the burden of owners collecting the debt themselves.
Chris Kirby, owner of Creative Design Studio, said: “The studio got so busy so quickly that I didn’t have the cash to keep buying stock. I had to place an order on Monday that I needed the finance for by Friday and so it was essential that I had access to cash.
“Lloyds TSB Commercial Finance managed to set up the factoring in less than a week, which meant I could buy a new delivery van, pay suppliers and continue growing the business.”
Peter Bould, Regional Manager at Lloyds TSB Commercial Finance, added: "Like many new businesses, Creative Design Studio faced a ticking clock when it came to cash flow. We were able to set up a facility in four days that ensures the company has the sufficient working capital to grow.
“Factoring is an ideal form of finance to support this type of growth. By releasing the value from their invoices, companies can quickly get hold of capital to support investment in their premises, technology and supplies.”
October 2009