Roy Walker found his courier company had two options: stay as he was, and run the risk of his business being overtaken by the competition; or expand, and take on additional work that he knew he could win. It was only when he came across invoice finance, that the dream of growth became possible.
Established in 2012, Banbury-based RWDispatch is a one-man band. Roy drives all over the country collecting furniture and art from antique houses and delivering it to the buyer. Some of the largest courier companies looked to him to deliver items on a contract basis, but Roy could not take on the business due to payment terms that went beyond 30 days.
Then he found the Touch Financial website online and a deal was arranged by the Touch Financial team. Roy is now able to secure cash against the invoices he raises –up to 100% of the invoice total. The more invoices he generates, the more cash is made available, which far exceeds what would have been available through a bank loan or overdraft facility.
Roy also had the credit collection arranged to be completed by the lender so he can continue to do what he does best – driving and delivering – without having to worry about chasing customers for payment. As a result Roy expects his turnover to double over the next year.
“My time is taken up with either driving to collect or deliver packages or finding the next job, so setting up a factoring agreement means that not only do I have cash to invest in the business, but also my administrative burden is reduced,” he adds. “There is always someone there to do credit checks, collect money and manage the books.
“Invoice financing gives me a fast track to finance enabling me to expand my business far quicker than I would otherwise have been able to do,” he concludes. “It didn’t take long to set up and now I can focus on growing my company.”
This is a perfect example of how a lack of access to quick cash is hampering many SMEs’ growth and slowing the economic recovery. If you have a good business and a good sales ledger, then invoice finance is the easiest and fastest way to get the cash you need to succeed. Banks clearly still do not have the appetite to lend, which is where alternative lenders can come to the fore to help.
Fill in the quote form using the button below and one of our consultants will give you a call for a free chat about how invoice finance and invoice factoring could help your courier business. Alternatively learn more about invoice finance for courier companies here.