As recruiters in the industrial and manufacturing sectors, Mploy has a responsibility to pay staff weekly - whilst offering customers 30 days credit.
In addition, and in order to stay competitive, the company has also had to stretch that to 60 days in some cases, whilst avoiding any gap in cashflow.
Understandably, efficient debt collection was slightly outside of their comfort zone. This aspect of any business is integral in securing healthy cashflow - especially if credit terms are stretched.
A funding package was created to enable the business to meet their customers’ needs, whilst growing the business. Sales linked finance helped the company to grow, without having to continually renegotiate terms and limits.
“The structure of this type of finance makes it possible to grow the business without the worry of how you’re going to fund it,” Mploy’s Mark Nash explains “Traditional methods, such as an overdraft, tend to be more restrictive when it comes to rapid growth.”
Mploy also benefitted from a professional credit control service from ABN AMRO Commercial Finance, and they’ve worked alongside the very same credit controller for 11 years.
So instead of chasing debts, Mploy can focus on their future business plans – knowing that their cashflow is in safe hands.
"Traditional methods tend to be more restrictive when it comes to rapid growth"
As a result of their tailored funding solution, Mploy has truly gone from strength to strength. The company has grown their team, recruiting new employees and opening a larger office. The hard work has paid off - in the last five years alone, Mploy’s turnover has doubled.
“I think we’d have struggled to get a [funding solution] to stay in line with turnover that’s now hitting £14 million” says Mark. “Our factoring facility, however, increases in line with our turnover and currently gives us access to £3 million of funding, and comes without the constant need to renegotiate terms.”
The funding solution has given Mark and the team the confidence to grow the business, without worrying about what the future may hold.
“Of course, we’ll need the comfort of knowing we can fund future growth,” says Mark. “But in the years since we started Mploy, and with the support of ABN AMRO, that’s never been an issue for us.”