LS Contracts new sectors

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Business:
LS Contracts Ltd
Location:
Milton Keynes
Sector:
Recruitment
Funding:
£275k - £350k
Product:
Selective factoring (non-recourse)

Progressive Milton Keynes recruitment firm takes on Bibby Financial Services

Growing LS Contracts looks to new sectors with cashflow solution in place

A Milton Keynes based recruitment business, which supplies on a national basis, is targeting significant growth and a positive year ahead with cashflow funding in place, in the form of invoice finance.

LS Contracts provides interim, temporary and permanent staffing services across a variety of industry sectors, specialising in the provision of permanent and contingency labour to the logistics and construction sectors.

Formed by director Jane Eggleton with 15 years’ experience in the industry, the business now manages 500 temporary staff, with up to 200 active at any time.

Over the past three years, the business’s own staff numbers have grown and it now employs a team of six recruitment specialists to service the staffing needs of leading brands. This year, the team is expanding its operations into the financial services sector through targeted sales and marketing campaigns.

However, the business’s outlook hasn’t always been as positive. Following the departure of a former director, Jane found herself with unexpected debt and no contingency plan in place.

“I really had to start again but the lessons I learned from this experience have helped me tremendously. Before I could grow the business, I had to pay off the debt which was passed onto me. It took a while but we are finally there and the business is now in a great position to move forward”, Jane said.

In order to drive profitability and success, Jane reviewed the funding options available for the rebranded enterprise, which is when she selected an invoice finance solution from Bibby Financial Services (BFS).

Jane said: “In the economic climate at that time - and with the debt we had inherited – the banks were unwilling to lend to a small business like ours. I was confident that we had a unique service offering but we needed working capital in order to take on more temporary and permanent staff.”

It was at this stage that Jane and her team were introduced to BFS who provide a £350,000 invoice finance facility. This enables the business to unlock value in unpaid customer invoices as well as utilising credit control management facilities from the specialist funder.

“Having a team of credit control specialists managing our payment collection is a huge advantage and allows us to focus on finding new clients and generating more business.

“In fact, BFS has opened my eyes to the benefits of outsourcing credit control and when a major retailer defaulted, it was only their expertise and willingness to help that enabled us to retrieve the money”, Jane said.

On the decision to select BFS as the business’s funding partner, Jane says she has made the right choice: “Having evaluated the services of six invoice finance providers, we definitely made the right decision with BFS.

“The support we receive from them is fantastic but it’s not only the funding we value, it’s also their expertise. Our BFS account management team are experienced and always at hand to offer support and guidance, which is a huge benefit to us.

“They’re actually more like an extension of my own team and the credit control services allow me to concentrate on winning business, instead of chasing outstanding payments.”

Jane and her team have a progressive outlook in relation to sources of business. A keen social media user and advocate, Jane effectively uses LinkedIn to network; building new relationships with employers and head-hunting executive professionals.

Jane said: “Our two main sources of business are LinkedIn and word of mouth referrals. Once we have a client on board, they stay with us due to the level of service we provide but LinkedIn is a great way of getting our name out there. It helps generate new enquiries and enables us to source the right people for the permanent positions we fill for our clients.

“We’re a progressive recruitment business with a passion for delivering a leading service to our clients. With funding and support from the team at BFS, we can now focus our attention on expanding the business in the construction, financial services and logistics sectors.”

Managing Director of Bibby Financial Services Sharon Wiltshire said: “LS Contracts is a great example of how determination coupled with a unique service proposition can lead a business to success.

“Jane and her team have leveraged the benefits of using invoice finance to their advantage and it’s been great to see the team overcome challenges to a position where they are now looking at growing the business into the future.”