Invoice finance supports expansion strategy to achieve business results

An Oldham office supplies firm is set to increase turnover by almost a third this year after switching banking providers and securing funding worth £2.3 million from Lloyds TSB Commercial and Lloyds TSB Commercial Finance.

ZenOffice, based on Broadway Business Park in Chadderton, specialises in providing office products, such as stationery and printers, to business customers across the UK via its website and retail outlet in Southport.

The firm, which was founded 30 years ago, is run by managing director Les Kerr and employs 50 people.

After a 20 year relationship with its previous banking provider, ZenOffice decided to switch to Lloyds TSB Commercial, which took over the company’s commercial mortgage and working capital facilities.

It also introduced the company to Lloyds TSB Commercial Finance, which provides an invoice discounting facility. This advances up to 85 per cent of the value of issued invoices within 24 hours of them being raised, meaning the business can put in place an expansion strategy and invest in new product lines.

The total package put together by Lloyds TSB Commercial and Lloyds TSB Commercial Finance is worth around £2.3 million.

Having secured the new funding package, the business is now on track to generate turnover of around £6.5 million, an increase of almost a third on 2010’s figure of £4.9 million.

Les Kerr, managing director of ZenOffice, said: “Like many businesses, we were hit by the recession as our customers cut back their spend on office supplies. But rather than just sit back and try to survive, we looked to actively grow the business instead.

“We did this by going out to secure new customers and orders, with the result that we have managed to grow our turnover by over 30 per cent over the last few years.

“This is set to continue following our switch to Lloyds TSB Commercial, which has made a real effort to fully understand our business in a short space of time, and provided funding which allows us flexibility and the opportunity to grow our business even further.”

Phil Simpson, relationship manager for Lloyds TSB Commercial, said: “ZenOffice is a well established business in the area that over the years has grown to serve a nationwide customer base.

“Les and his team have managed to put together a thorough business plan and well thought out expansion strategy which has seen impressive turnover growth even through the recession.

“We understand how daunting switching banking providers can be, so we aim to make the process as simple as possible from start to finish.”

Paul Roylance, regional manager for Lloyds TSB Commercial Finance, said: “By using Lloyds TSB Commercial Finance’s invoice finance facility, the company’s working capital is boosted, as the value of issued invoices is advanced. This means the payment gap between supplying customers and receiving payment is no longer a problem.”