The Challenge

Having been in the industry for several years prior to setting up Bandwidth, Charlie knew that the Contract Recruitment side of the business would require a sound cashflow model in order to finance the gap between paying monthly contractor wages and receipt of customer payments. There was also a requirement for a professional credit control service, which would allow Charlie to focus his expertise on continuous business development.

After looking into a number of options ABN AMRO were chosen as finance partners and have continued to provide support since 2014.

The Solution

The initial challenge of covering IT contractor wages and keeping on top of outstanding customer invoices was overcome by the provision of a factoring facility which released 90% of the face value of the invoices immediately whilst ensuring customers kept to agreed payment terms.

Ongoing flexibility and support have also kept pace with the growth of the business. In particular, when the increase in the contractor requirements of one customer threatened to restrict funding, due to exceeding the 30% concentration restriction in place, discussions were had and a way forward quickly found. In fact the change to the facility was agreed within 24 hours with new documentation out to the client within 48 hours.

The Result

The addition of credit protection provided great added value for a minimal increase in fees. With insurance against bad debts in place, concentration limits could be lifted and more funding released. The benefits of this are twofold; not only is the cash to cover contractor payments assured, eventual payment of the invoice is guaranteed, giving peace of mind in these uncertain economic times.

The funding has also assisted in helping the business grow with a steady increase in staff since day one. The nature of the facility, whereby funding grows in line with sales, also means that future growth can be planned without scratching around for the cash to cover it.

On a final note Charlie is keen to acknowledge the ongoing support of “the very personable account manager who takes the time to understand our business and the ever changing nature of the sales ledger.” And despite constant approaches from other finance providers Charlie is pleased with the offer and service received from ABN AMRO and has also referred “the nice bunch of people at ABN AMRO” to several other businesses seeking finance.