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Bridging the cashflow gap

Turn outstanding invoices into cash with MarketFinance

When landing big-name clients meant putting an end to supplier finance, Malcolm Watson needed to rethink his company’s cashflow strategy. Here’s how we worked with MarketFinance to find an invoicing solution that could keep up.

When William Watson founded STS2000 in 1997, self-checkout tills had only just been introduced in the UK. A little over 20 years later, it’s hard to believe there was a time before shoppers could single-handedly scan and process their own purchases. Providing IT support services to the major players in this multi-billion-pound industry has become STS2000’s bread and butter.

STS2000 remains a family-run business with William’s son-in-law, Malcolm, at the helm. They provide specialist services to the computer industry including refurbishment and testing as well as the repair and storage of PC and EPOS equipment. Their combination of specialist IT technical skills, experience and resources is unparalleled in the market.

New opportunities, new challenges

Over the years, Malcolm has worked with a wide variety of top-name clients, from leading supermarkets and department stores to IT manufacturers and telecom companies. The margins are very competitive in his line of work, so cashflow is always on his mind.

“We’d been using supplier finance for many years as a way of paying our suppliers on credit,” says Malcolm. “But last year, we won contracts with new big-name clients where this wasn’t an option. Having to cover upfront supplier costs before getting paid for the work put a real strain on our cashflow.”

Once work for these clients was completed, STS2000 had to wait up to 60 days to be paid. With so much of their cash tied up in outstanding invoices, covering fortnightly payroll had become a challenge.

“Some of the team have been working here since they left school,” Malcolm explains. “I’ve known them for years. When you’re a small business, your staff are like family so making sure they get paid on time has to be a priority.”

Bridging the gap

Malcolm has had a business account with us for 45 years. Knowing he’d need to look for another funding solution, he didn’t hesitate to get in touch with his Relationship Manager, Ben Chapman. Our partnership with MarketFinance had just been launched, and Ben saw that invoice finance would be a good fit.

“In this time-critical scenario, it was imperative to identify a speedy solution to meet the client’s required needs,” says Ben. MarketFinance were in touch with Malcolm within a matter of hours, taking time to really understand the business and the funding requirement.

“It was evident that MarketFinance share our core service values to deliver the best possible outcomes for our mutual clients,” says Ben. “It was a pleasure to work with MarketFinance and a fantastic opportunity to offer a valuable new solution to my client. I very much look forward strengthening our partnership and working with them more closely in future.”

A solution that works

Now, Malcolm doesn’t have to worry about waiting 60 days for his clients to pay. With MarketFinance, he can turn outstanding invoices into cash straightaway.

“The cashflow squeeze we were dealing with last year was really stressful,” adds Malcolm. “So it was a massive relief to get it sorted quickly and get back to business as usual. The team at MarketFinance has made the whole thing very easy. 

“This was the first time I had come across an invoice finance solution that lets you choose which invoices to fund. With MarketFinance, I have total flexibility. I get the cash I need, when I need it. It just works.”

Having invoice finance in place means that STS2000 can fulfil their commitments – both to their staff and their clients. With easy access to funding, Malcolm can keep business running smoothly.

Need support?

Our business managers are here to support you and your cashflow journey so please get in touch. You can learn more about invoice finance and our partnership with MarketFinance.

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