Recruitment Company is set for most profitable year yet thanks to factoring facility

A Sheffield-based recruitment consultancy is set for its most profitable year since inception after securing a £250,000 factoring facility from Lloyds TSB Commercial Finance.

Fern Global provides permanent and temporary staff for firms in the construction, engineering, industrial and clerical sectors.

Established in 2007, the business employs six members of staff and serves a variety of customers from single traders to large PLCs.

In 2010 the company had its most profitable year since its inception and in order to maintain momentum, the firm found it needed a cash flow facility to ensure capital was available to reinvest in its growth.

Fern Global approached Lloyds TSB Commercial Finance’s specialist recruitment finance team which provided the firm with a £250,000 factoring facility.

This form of funding is based on the business’ issued invoices and grows in-line with sales, ensuring the company can capitalise on the improving economic conditions without being held up by payment terms.

Stephen Mclean, director at Fern Global, said: “We found 2008 and the beginning of 2009 tough as the recession hit and more and more businesses stopped recruiting. However, last year was our most profitable yet as an increasing number of employers sought temporary workers.

“This market trend is set to continue and I am feeling confident that 2011 will see more firms seeking to recruit more full-time members of staff, which is good news for us and all those looking for work at the moment.

“With the support of Lloyds TSB Commercial Finance we are now in a position to capitalise on the improving conditions and this year we are on track to have our most profitable year since inception.”

Sue Pendergast, client manager at Lloyds TSB Commercial Finance, said: “It’s fantastic to see Fern Global in such a strong position financially, especially when the sector is still affected by the economic downturn and recovering slowly.

“It is essential for companies growing at this pace to put in place a long-term expansion strategy to make the most of the available opportunities and a free-flowing cash flow is key to this.

“The factoring facility is also ideal for smaller businesses, as it has a built-in debt management facility which frees up a considerable amount of time that would be previously spent chasing debtors.”

February 2011