A-strip Environmental are set for growth with the support of factoring facility
A Newcastle-based asbestos removal contractor is set to triple turnover to £1.5million this year after securing a £50,000 factoring facility from Lloyds TSB Commercial Finance.
A-Strip Environmental is one of the North’s leading asbestos management businesses, offering removal of the mineral alongside waste management and IT services.
Established in 2006, the firm, which employs between 18 and 30 people, serves a fragmented client base across the public and private sectors including local building contractors and councils.
Since inception, the business has continued to grow and found it needed a cash flow boost to alleviate liquidity pressures caused by 60 to 90 payment terms with customers.
Lloyds TSB Commercial Finance devised a £50,000 factoring facility, which advances funds from up to 90 per cent of issued invoices to ease demands on the firm’s working capital.
As a result of this funding boost, A-Strip is now on track to treble turnover to £1.5million by the end of this year. The factoring facility has also provided the business with increased confidence to bid for more long-term contracts and it has recently won a three year deal with North Yorkshire Police and is in the process of finalising partnering arrangements with established main contractor construction firms within the North East of England.
Chris Hoggarth, director at A-Strip Environmental, said: “We have worked hard to establish our business at the forefront of asbestos removal and management and we work by the ethos that we need to constantly find new ways to evolve.
“To facilitate this, we found we had to boost cash flow to deal with extended customer payment terms, coupled with our own bills and overheads.
“The factoring facility from Lloyds TSB Commercial Finance has been intrinsic in improving our profitability and securing long-term contracts for 2011 and beyond.”
Peter Bould, regional manager, Lloyds TSB Commercial Finance, said: “Asbestos is present in 500,000 premises in the UK and it is great that Chris and his team offer waste management and consultation alongside removal to improve their customer’s understanding of the issue.
“A-Strip has a strong pipeline of business going forward which is down to the company’s shrewd business sense and unwavering commitment to grow.
“I worked closely with the firm to devise the funding facility and in this instance, factoring is ideal as it grows in-line with sales, providing a reliable and secure way to boost cash flow.”
January 2011