London-based Portland Resourcing plans for the future with Invoice finance facility
Portland Resourcing, a London-based recruitment firm, is set to increase turnover by 40 per cent this year after securing an invoice discounting facility from Lloyds TSB Commercial Finance.
The firm, which employs 30 people, was established in 1996 and specialises in sourcing temporary IT staff for multinational firms, many of which are household names.
Around half of the companies which Portland locates staff for are based overseas and this means, due to lengthy payment terms, the business’ working capital can be put under pressure.
Portland Resourcing's expected increase in foreign demand for contractors, from 95 to 140, meant the management approached Lloyds TSB Commercial Finance for a funding boost.
Lloyds TSB Commercial Finance provided the firm with an invoice discounting facility to assist in implementing long-term growth plans. This advances up to 85 per cent of the value of issued bills within 24 hours, meaning Portland is now able to put in place an expansion strategy and take on new clients without concern over working capital being tied up in issued invoices.
Paul Birch, managing director of Portland Resourcing, said: “I have been working in the recruitment industry for 15 years and the importance of free-flowing liquidity is more vital, in this economic climate, than ever before.
“The changeable nature of the sector also means that demand can increase at the drop of a hat and so to capitalise on these improving conditions worldwide, we needed a cash flow boost.
“The invoice discounting facility from Lloyds TSB Commercial Finance has allowed us to confidently forecast our working capital, without having to worry about the extended payment terms which inevitably come with trading abroad.
“As a result of the facility we are in a position to increase our turnover significantly this year.”
Ross Veale, regional manager, Lloyds TSB Commercial Finance, said: “As the value of the sterling is low, trading conditions abroad are favourable for UK companies and it is encouraging to see Portland Resourcing capitalising on these and growing as a result.
“The invoice discounting facility is ideal for firms in Portland’s position as the advance of the issued invoice means the business has working capital to invest in the future.”
May 2011