A £1m Improvement in Working Capital

Stephen’s client was a recruitment company that had lost focus on working capital management while they were going for growth, implementing a new transaction system and changing their main bank relationship. The net result was they had exceeded their invoice financing borrowing limit by £0.5 million .

How we helped

Stephen helped them transform the management of their working capital.

Overall the business moved the £0.5million shortfall to a £0.5million surplus in one month.

Focusing on increased invoicing frequency and timeliness to increase short term invoice financing funding availability

Increasing supplier payment terms to 30 days for a number of contractors who were being paid within 7 days, to reduce the short-term cash outflow

More targeted credit control using Pareto principles which helped reduced 120+debt from £1m to £400k within one month

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