As a start-up business Madison Medical’s main challenge was its lack of available cash flow. Trying to enter a competitive market whilst building a reputation, experience and contacts meant they had to be extremely competitive on price.
“Having low margins created low cash flow for the business” says Director Geoff Weatherilt. This in turn created a huge challenge for them especially when trying to establish themselves as strong competitors within a challenging market.
Like most start-ups “We needed some more breathing space to provide some flexibility in dealing with cash flow fluctuations” Geoff therefore turned to ABN AMRO Commercial Finance looking for help with the businesses invoices and cash flow restrictions.
ABN AMRO Commercial Finance supported Madison Medical with help and sector expertise, providing a service beyond just financial funding. In 2010 Madison Medical was offered a funding line of £100,000 using Factoring as a solution. This allowed the business to gain immediate access to its working capital as soon as it raised an invoice in order to improve their cash flow.
“The deal was crucial for funding our start up, the most important element for us were the people. ABN AMRO gave our business lots of support and shared knowledge; they provided much more than just funding. This really helped improved our businesses internal processes.”
Geoff told us that, “ABN AMRO offered a straight forward process that was completely focused on our business. It gave me a great confidence boost that ABN believed in the business so early on”
Madison Medical has now been a client of ours for over six years and their funding line has increased along with their sales performance to £200,000 to be in line with their continued growth.
“We’d recommend factoring not just too all new start up businesses, but to all companies. Many who don’t realise how beneficial it could be to them. I wouldn’t ever hide the fact we use Factoring, it is part of our business model”
Six years on Madison Medical is looking to continue its growth and improve their offering. The business is now turning over £3.8M as of last year. Geoff says “we are at a point where we are getting noticed, we no longer rely on direct contact from sales peoples to win clients. We are an NHS approved supplier since 2015 and ISO9001 accredited”
As well as growth and turnover Madison Medical are also being recognised for their excellent service and this year have won multiple business awards including; Stockport business of the year 2016 and FSB healthcare provider of the year 2016.
“The best thing about our business is definitely our retention of clients, we very rarely lose any clients and pride ourselves on this. We are also very proud to be a local business and try to give back to the community through our social responsibility. For example in 2016 we raised £5000 for the Salford Royal Children’s PANDA unit through a colour run completed by employees.”