Pegasus Staff Services capitalises on new contracts with help from invoice finance
Pegasus Staff Services, a Derby-based recruitment firm which specialises in the transport sector, is targeting 20 per cent growth after securing a £350,000 funding package from Lloyds TSB Commercial Finance.
Established in 1989, the firm has offices in Derby, Coalville, Burton upon Trent and Mansfield, employing eight members of staff.
The £2 million turnover business sources contract HGV drivers for the logistics industry and works with customers across the East Midlands.
As a result of the challenging economic conditions, Pegasus found its customers required longer payment terms, which became stretched from the usual 30 days to 90. This put pressure on the firm’s cashflow and it approached Lloyds TSB Commercial Finance for a funding package to ease the extended payment timescales.
The funder provided a £350,000 invoice discounting facility which has allowed the business to capitalise on new contracts.
By releasing the value of a company’s invoices, invoice discounting enables a business to grow in line with sales as well as bridge the gap between issuing an invoice and receiving payment.
“We can now evaluate new clients by income, and not the strain they may put on our cashflow,” said Chris Colder, managing director of Pegasus Staff Services.
“We have worked hard over the past 22 years to cultivate a strong working relationship with our customers and, as a result, many of them have been with us for years.
“Working with the Lloyds TSB Commercial Finance’s specialist Recruitment Finance team helped us put in place the funding we required to position ourselves for regional expansion and grow our customer base.”
Linda Moulds, client manager for Lloyds TSB Commercial Finance’s Recruitment Finance division, said: “Extended payment terms are a common result of a recovering economy as businesses get back on track. It is great to see Chris and the team expanding its customer base and boosting its own cashflow for increased financial headroom.
“The invoice discounting facility is ideal for firms in Pegasus’ position as advancing issued invoices means the business has the working capital required to invest in the future.”
September 2011