Case Studies

Strength in numbers

Strength in numbers

As the challenges posed by the worsening economic climate continue to place a strain on funders and their clients alike, the need for co-operation has never been so prominent in order to get the best out of a facility for all concerned.

Working together and maintaining a strong relationship is fundamental to understanding each other’s requirements, but in the event both parties’ interests don’t align, it is important a different kind of co-operation comes to the fore.

The Hilton-Baird Group has shown time and again how effective it can be when the need arises to work together to maximise the result both all parties concerned, and this was true in this instance.

The client, a leading supplier of kitchen appliances to new build homes, had been hit by the slowdown in the housing market and, with credit insurance no longer available on their top clients, the funder had little choice but to reduce the funding in a bid to minimise their risk.

Aware of the toll the recession had taken on companies that had been directly affected by the housing market, the funder appointed Hilton-Baird Audit & Survey to review the processes and procedures of the client to gain a clearer picture as to how hard they had been hit.

On site within 24 hours, the our team undertook a full audit of the client and consequently made recommendations to the funder as to the best plan of action. Hilton-Baird Audit & Survey took the time to understand the business and find solutions to the funding challenges, bringing some common sense suggestions to the table that had some immediate cash flow benefits.

Despite this, the current funder was still uncomfortable with the risk associated with the sector and decided to exit the facility, and asked Hilton-Baird to find the client a more suitable funder that was able to fund their line of business.

Hilton-Baird Audit & Survey duly passed the case onto Hilton-Baird Financial Solutions, who used the audit report to identify a funding facility and provider that would meet the client’s cash flow needs. During the audit, the customer contracts had been dissected and, with a few changes, they were made acceptable for a new funder to understand and finance.

Hilton-Baird Financial Solutions quickly set about identifying and introducing two funders who, when presented with a full picture, were comfortable with the sector and the client situation.

Consequently, a £2 million invoice discounting facility with a new funder was secured, providing the cash the client desperately needed whilst preserving the position of the outgoing funder who had been able to bring all the facts to the table to make an informed risk decision to exit.

If you would like to find out more about our auditing services, please call 0800 2761310 or email audits@hiltonbaird.co.uk.

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Our clients

  • IGF Invoice Finance
  • PNC Business Credit
  • Factor 21
  • Bibby Financial Services
  • Secure Trust Bank
  • Henry Howard Cashflow Finance
  • Ultimate Finance
  • Close Brothers Invoice Finance
  • Woodsford Tradebridge
  • GapCap
  • Nucleus Commercial Finance
  • Leumi ABL
  • Investec

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