Axica Recruitment has used invoice finance as a funding solution since the launch of the company. However, the speed of growth, coupled with the expanding geographical base of its customers, left their existing funder outpaced and with little appetite to support the expanding business.
Some funders had shown a negative attitude towards an expanding export book - which was a serious drawback for Axica, as this formed an integral part of their growth strategy.
“It’s clearly important to cover your immediate funding requirements,” says Axica’s Steve Madden. “But when you have a plan to grow and penetrate new markets at home and abroad, you need to secure the future too.”
To move forward securely, Axica needed to be sure that any replacement funder was in for the long-haul and happy to support growth without restriction.
"You need a finance partner that is happy to keep pace and not look to slow down half way through your journey"
ABN AMRO Commercial Finance worked closely with Axica, who were involved from start to finish – including the initial negotiations and audit procedure.
“The guys at ABN AMRO were very commercially minded and showed great flexibility towards our expansion into international markets,” explains Steve. “You need a finance partner that is happy to keep pace and not look to slow down half way through the journey”.
The contract also included a one month notice period in the first six months, to allow the client to try the service before committing.
The funding package covers current day-to-day cashflow needs, with sufficient headroom for expansion. The sales linked finance also removes the hurdle of constant renegotiations in respect of limit increases.
Bad debt protection provides cover for customer failure, which is important for any business - but particularly valuable when dealing across multiple jurisdictions.